Bitcoin ETF Selling Returns as BlackRock Says Investors Are Holding Through the Downturn

• Bitcoin ETF investors saw fresh Bitcoin ETF outflows, with BlackRock’s IBIT and the Fidelity Bitcoin ETF among the funds recording withdrawals
• The BlackRock Bitcoin ETF recorded $53.6M in net outflows, while Fidelity’s FBTC saw $40.3M leave the fund
• Despite the outflows, BlackRock says Bitcoin long term holders continue to show resilience and maintain a long-term approach through the downturn

Bitcoin ETF investors are expressing a mixed sentiment, as ETF outflows of major firms such as Blackrock and Fidelity make a comeback. The US spot Bitcoin ETFs recently saw outflows with $144M on August 10. This development marks an end to consistent Bitcoin inflows that the asset was basking in for the last five days. However, amid all this, BlackRock’s Head of Digital Assets Robert Mitchnick has issued a statement adding how the long-term investor sentiment remained unshaken, with Bitcoin ETF investors showing resilience in the process.

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BlackRock and Fidelity Note Bitcoin and Ethereum Outflows

The latest Bitcoin ETF outflows were led by some of the biggest names of the financial industry. BlackRock’s IBIT ETF recorded nearly $53.6M in net outflows. At the same time, Fidelity’s FBTC also witnessed net outflows, with $40.3M leaving the ETF.

At the same time, BlackRock’s ETHA ETF recorded nearly $23.8M in net outflows. The figure represents ETF flows rather than a confirmed $23.8M sale of ETH by BlackRock clients. The overall market finished with nearly $144M, leaving the US spot Bitcoin ETFs.

The current streak of net outflows has arrived after the US spot Bitcoin ETFs witnessed nearly $853.5M in net inflows. BlackRock’s IBIT accounted for the most inflows, followed by Fidelity FBTC.

However, these outflows are a result of net ETF redemptions and fund flows and not necessarily the fund managers selling these assets. ETF outflows do not automatically mean that BlackRock or Fidelity themselves sold the corresponding amount of Bitcoin.

BlackRock Is Witnessing Long-Term BTC Demand

Bitcoin ETF investors are showing unique resilience as markets continue to spiral way down. The latest figures are yet to impact the long-term Bitcoin holder sentiment. Such outflows often reflect an investor’s mindset to balance their portfolios and do not imply broader market panic selling.

At the same time, BlackRock digital assets chief Robert Mitchnick said the firm has consistently been documenting investors buying and holding Bitcoin from a long-term investment perspective.

“Well, what we’ve seen consistently through these two and a half years is that the ETF investor base tends to be more of a fundamental long-term buy and hold type segment. And that’s continued to be exhibited through this downturn. And everybody who comes into Bitcoin hopefully understands that it’s a volatile asset. It’s always been a volatile asset, right? There have now been five major boom and bust cycles. Each time, the cycle ends significantly higher than the prior one, but with a bumpy ride along the way. And so it’s been the case in this one as well. So I think that we’ve seen sentiment turn in a noticeable but subtle way the last month or so.

He later added how this behavior has stayed consistent even when the markets projected a BTC downturn, outlining Bitcoin ETFs’ investor stance for the future.

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Bitcoin Decoupling From Equities Is A Bullish Sign

Mitchnick was quick to add comments on Bitcoin’s recent decoupling from equities. He shared how Bitcoin outperformed stocks, which had a recent pullback recently. This gave Bitcoin the time to recover swiftly.

‘You’ve seen Bitcoin decouple from equities starting earlier in the year. For a while, that was hurting Bitcoin because equities, particularly AI, were roaring and Bitcoin was kind of flat to down. Then in July, when AI had the huge pullback, Bitcoin outperformed significantly. That decoupling is healthy because it’s part of the thesis for a lot of people around Bitcoin as a diversifier and potentially a hedge against some of the left tail risks that exist elsewhere in the portfolio.”

Mitchnick’s comments support the idea of Bitcoin’s future recovery despite the current market pressure. The asset is currently sitting at $63K, down 2% in the last 24 hours.

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