The rollout of United States Bitcoin exchange-traded funds (ETFs) has resulted in huge BTC outflows from miner wallets to exchanges, with more than $1 billion moved within the first 48 hours. Based on the available chain data, miners have consistently transferred Bitcoin to exchanges since ETFs started trading.
Major Outflows in 48 Hours After ETF Approval
Bitfinex Alpha market reported over $1 billion in BTC flowed from miner-associated wallets to exchanges on January 12, the second day of Bitcoin ETF trading. This marked a six-year high in terms of value transferred out by miners in one day. February 1 also saw substantial outflows, with 13,500 BTC moved.
CryptoQuant estimates that net miner outflows have totalled around 10,200 BTC since the U.S. Securities Exchange Commission approved the ETFs. Factors driving the transfers include miners needing liquidity for operations and expenses or adjusting positions based on market response to the ETF launch. Some miners may have also sold Bitcoin to take profits during the price run-up before approval.
Continued Net Outflows Reflect Market Response
Bitfinex reported miner Bitcoin flows have been negative following the ETF approvals. For example, February 2 saw around 10,000 BTC moved back into miner wallets after the large transfer out the previous day. However, miners still registered a net outflow of 3,500 BTC over 24 hours – the highest value since last May.
Investors Remain Confident in Bitcoin’s Value
While miners have moved coins to exchanges lately, on-chain metrics show little activity from long-term Bitcoin holders. Per Bitfinex, supply last active from one to two-year timeframes has declined, signalling a tight holder grip. This trend suggests investors have high conviction in future Bitcoin price appreciation despite current volatility.
However, the Grayscale Bitcoin Trust unlocking also stoked some holder activity. Some formerly dormant BTC has circulated after unlocking, with investors possibly swapping into ETFs.
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