Bitcoin ETF Holdings Dip Below Satoshi as Outflows Persist

The recent trend in Bitcoin Exchange-Traded Funds (ETFs) has been marked by significant outflows, amounting to nearly $750 million over just two days, as the cryptocurrency market continues its downward trajectory. Leading the way in these sales, BlackRock, the foremost ETF issuer, has divested approximately 2,000 BTC in the last 24 hours.

As a result of these substantial liquidations, ETF issuers now collectively hold less Bitcoin than Satoshi Nakamoto, the enigmatic creator of Bitcoin. This change comes just three months after they surpassed his holdings by aggressively accumulating Bitcoin, indicating a drastic reversal in strategy.

Ongoing Outflows from Bitcoin ETFs

Since receiving approval from the SEC last year, Bitcoin ETFs have significantly influenced the market landscape. However, they have recently taken a bearish turn. In late February, outflows reached a staggering $2.7 billion, continuing a trend that has seen the last four weeks marked by consistent outflows. This week alone, the industry has suffered a loss nearing $750 million.

This marks the seventh consecutive day of outflows for Bitcoin ETFs. BlackRock’s investment product, IBIT, led the losses with $151 million in the last 24 hours alone.

Following speculations in mid-February about BlackRock being likely to sell its Bitcoin holdings, ETF analyst Shaun Edmondson highlighted the growing trend of outflows. He remarked,

“The markets are currently 'risk off' due to tariff uncertainties, yet it is surprising to see the US Spot ETFs collectively fall below Satoshi once more, despite bullish narratives coming from the SEC and raising capital.”

Since Edmondson's previous report, BlackRock has sold around 2,000 BTC. The long-term intentions of ETF issuers regarding this trend remain uncertain, but the current sales raise significant concerns.

Notably, these issuers had surpassed Satoshi’s Bitcoin holdings in December, and the recent outflows have consumed much of the aggressive purchasing made over the preceding three months.

Despite the prevailing pessimism around ETFs, Bitcoin's market price has shown resilience. Although the entire cryptocurrency sector has been affected by substantial outflows, Bitcoin's price decline has been moderated somewhat by the release of the latest US CPI report, which was more favorable than expected. This has provided Bitcoin with a temporary reprieve, although the duration of this relief remains speculative.