Institutional Exodus: Bitcoin Spot ETF Investors Offloaded 25,000 BTC in Q4 2023
The cryptocurrency market has been under immense selling pressure, a trend that’s hardly a secret. However, the precise extent of institutional divestment from Bitcoin Spot ETFs during Q4 2023 remained largely unquantified—until now. Bloomberg ETF analyst James Seyffart has shed light on this significant capital flight, providing a clear picture of the scale of the “disaster.”
On Tuesday, Seyffart took to X (formerly Twitter) to post his findings, asking: “What did institutional investors filing 13F reports do with Bitcoin ETFs in Q4 2023?”
“Unsurprisingly, they were all selling… Overall, 13F filing institutions offloaded approximately 25,000 Bitcoin-equivalent in ETF shares during Q4 2023.”
A closer look at the ownership structure of Bitcoin ETFs, compiled by Bloomberg, reveals that “Investment Advisors” and “Hedge Fund Managers” represent the two largest categories of holders. Yet, it was precisely these major players who collectively sold off 25,098 Bitcoin-equivalent in ETF shares during Q4 2023, underscoring a broad-based institutional retreat.
Further data cited by James Seyffart from Bloomberg indicates that Brevan Howard emerged as the leading institutional seller. The hedge fund dramatically slashed its Bitcoin ETF holdings by over 17,000 Bitcoin-equivalent in a single quarter, topping the withdrawal charts among all reporting institutions.
Despite this significant institutional exodus, BlackRock and Fidelity’s offerings continue to dominate the global Bitcoin Spot ETF landscape, maintaining their positions as the two largest funds by assets under management (AUM).
However, the winter of big-player withdrawals shows no signs of thawing. As Bitcoin’s downward trend persists, many analysts are warning that the market is deeply entrenched in a state of “extreme fear.”
The selling spree appears unrelenting. According to data from SoSoValue, the 12 US spot Bitcoin ETFs collectively experienced net outflows of $316 million during the week ending February 20. This marks the fifth consecutive week of net capital outflows, signaling continued pressure on the nascent ETF products.
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