Fidelity Moves Bitcoin Holdings Amid ETF Outflows

After several days of heavy outflows from Bitcoin (BTC) ETFs, Fidelity has begun moving its holdings.

Recently, the firm transferred multiple batches of BTC from its main custodial wallet to new addresses, splitting each batch into smaller amounts. Although these transactions have been executed, there are no signs yet of these coins being sold on the open market. Unlike other funds, Fidelity does not use Coinbase Custody.

This movement follows a period where BTC ETFs saw a large net outflow of up to 10,428 BTC, with Fidelity’s recent actions part of a broader trend that includes significant selling in August. The market has seen volatility, with BTC prices dipping as low as $55,000, causing some ETF traders to sell quickly.

In addition, Grayscale has been offloading Ethereum (ETH), moving 15.47K ETH to Coinbase Prime, while ETH remains depressed at $2,413.25, reflecting a 60% drop over recent weeks.

Ceffu, previously Binance Custody, has also shown outflows, with over 3,000 BTC moved since late August. Despite this, Ceffu remains active in other areas, including transactions with various altcoins.

Overall, institutional selling has been prevalent, but short-term BTC investors are experiencing unrealized losses. Glassnode notes that Bitcoin must stay above $51,000 to maintain upward momentum and avoid further declines.