Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
The Bitcoin (BTC) market has continued to surprise many investors as it sends conflicting signals to investors. This time, the action of institutional buyers reveals divergence in strategies as concerns the leading digital currency.
BlackRock goes against "sell" trend
Arkham, an on-chain data platform, highlighted the recent buying and selling activity among major financial institutions managing spot Bitcoin exchange-traded funds (ETFs). These asset managers showcased different approaches to Bitcoin with their latest moves.
Yuri MolchanNotably, the trio of Fidelity Investments, Grayscale Investments and Invesco offloaded part of their Bitcoin stash recently. Although no clear reason was given for the asset managers' mass sell-off, some speculate that BTC's price volatility could have triggered it.
These asset managers' sales of Bitcoin are likely being made via their respective Bitcoin ETFs. Analysts suggest the move could be a way to rebalance their assets strategically.
Meanwhile, BlackRock deviated from these other asset managers with a significant $50 million invested in purchasing Bitcoin. That is over 515 BTC bought, while others actively sold their Bitcoin holdings.
This development signals that the world’s largest asset manager remains confident in the long-term value of BTC.
Financial experts consider BlackRock’s accumulation of Bitcoin a bullish signal for the asset, even when others have opted to reduce exposure. As of the last count, BlackRock held over $60 billion worth of BTC and has continued to increase its assets.
Market reaction and Bitcoin price outlook
Interestingly, on the broader Bitcoin ETF market, there have been two consecutive days of net outflows. Data from Farside Investors show that out of the 11 asset managers, only BlackRock recorded positive inflows over the past two days.
Tomiwabold OlajideThis highlights BlackRock’s growing influence on the crypto ETF market. Effectively, it now holds 2.7% of the entire Bitcoin supply. With institutional players repositioning, retail investors remain observant, watching Bitcoin’s price.
As of this writing, the Bitcoin price was down by 2.0% to $95,869.80, per data from CoinMarketCap. However, trading volume is up by 15.58% to $37.38 billion.
Yuri Molchan
Gamza Khanzadaev
Dan Burgin
Vladislav Sopov