Fidelity Investments, one of the issuers of spot Bitcoin exchange-traded funds (ETFs), is moving Bitcoin from one of its main wallets to new wallets, according to Arkham Intelligence.
Fidelity Moved 4,000 BTC From One Of Its Main Wallets To New Wallets
According to Arkham Intelligence, a blockchain analysis platform, Fidelity Investments, the issuer of FBTC, moved 4,000 BTC from its custodial wallet to new wallet addresses.
This move is coming a few days after Fidelity’s FBTC reported deep outflows.
The findings showed that Fidelity first sent out the funds in several tranches of 200 BTC transactions into four different wallets.
The firm later split the 200 BTC in each wallet further into three different wallets, sending 99.99 BTC into one wallet and 50 BTC into two wallets.
At the time of writing, there is no sign that the Bitcoin tokens have been sold or transferred to the open market.
While most other ETFs like BlackRock keep their assets with Coinbase Custody, Fidelity keeps its assets in a self-custodial wallet, “Fidelity Custody.”
A few days before this transfer, BTCRepublic reported that the US spot Bitcoin ETFs faced a major downturn post-labour day, losing about $288M in net outflows, which led to total outflows of 10,428 BTC from 10 Bitcoin ETFs.
The outflows follow previous signs of sell-off amounting to 16,000 BTC in August.
The US spot Bitcoin ETFs faced some days of turbulence due to Bitcoin price volatility, especially when the price of BTC dropped to about $55,000. The drop in Bitcoin price triggered ETF holders to sell in panic, resulting in massive outflows.
Spot Bitcoin ETFs are not the only ones affected; spot Ethereum ETFs also experienced their share of outflows. For instance, Grayscale moved 15,470 ETH in four separate transactions to Coinbase Prime.
Institutional Bitcoin Holders Were Also Affected
Bitcoin ETF holders are not the only ones hit by the outflow; institutional BTC holders were also affected.
In August, institutions like Ark Invest and Grayscale recorded massive outflows, except for BlackRock, which showed no sign of transfer from their crypto wallets.
Ceffu experienced outflows of over 3000 BTC from its custodial wallets to Binance hot wallets since August 26.
Bitcoin Shows Signs Of Slow Accumulation
At the time of writing, Bitcoin was trading at $56,731 per coin, according to Tradingview.
Over the week, the price of Bitcoin has been declining, dipping to $56,786.
This led to slow accumulation. Reports showed that the number of new wallets holding up to 10,000 BTC has risen to 1000.
