Bitcoin ETFs face short-term volatility as outflows hit major funds like ARKB and GBTC, even as institutional holdings climb to 6.29% of the total circulating supply.
Bitcoin ETFs now hold 6.29% of total Bitcoin supply, reducing float and potentially increasing volatility.
ARKB experienced the largest weekly outflow of $141.9 million among Bitcoin ETFs.
GBTC saw $62.3 million in weekly outflows, reflecting continued redemptions.
Ethereum ETFs have accumulated $13.25 billion in assets, indicating growing institutional exposure.
HODL recorded a small weekly outflow of $5.3 million.
BITB had a weekly outflow of $2.7 million.
US spot Bitcoin ETFs now control 6.29% of the total Bitcoin supply, with $102.5 billion in assets under management. Despite long-term growth, the sector faced a volatile week ending September 18, recording significant outflows led by the ARK 21Shares Bitcoin ETF. Analysts project that reaching a 10% market ownership threshold could take until mid-2029, assuming current inflow trends persist.
Coins held by ETFs are stored in cold storage and removed from active exchange order books. This reduction in floating supply can lead to more volatile price movements, as there are fewer coins available to absorb sudden changes in market demand.