U.S. spot Bitcoin exchange-traded funds recorded $104.9 million in net outflows during Tuesday’s trading session, marking a weak start to the week for the sector. Total trading volume dropped to just above $3 billion, representing a dramatic fall from the February 5 record of $14.7 billion and indicating cooling market participation. The decline coincided with institutional disclosures of fourth-quarter holdings, revealing significant reallocations among major investment firms and hedge funds. Market observers say the data suggests consolidation rather than panic selling, with investors adjusting positions following earlier strong inflows into crypto-linked products. New Institutional Buyers Emerge Jane Street ranked as the second-largest purchaser of BlackRock’s iShares Bitcoin ETF in the fourth quarter, adding approximately $276 million worth of shares. A previously unknown Hong Kong-based firm called Laurore also appeared in filings, acquiring $436.2 million of the ETF in a single reported purchase. According to Bitwise adviser Jeff Park, the mysterious entity could represent early signs of Chinese institutional capital entering regulated Bitcoin markets. Park noted the company lacks a public presence and identified the filer name Zhang Hui as extremely common, increasing speculation surrounding the investment’s origin. Major Investors Adjust Exposure Several funds increased allocations, including Weiss Asset Management and 59 North Capital, while Abu Dhabi sovereign investor Mubadala raised holdings by forty-five percent to roughly $630.7 million. Conversely, Brevan Howard cut its exposure dramatically, reducing its position from about $2.4 billion to roughly $273.5 million during the same reporting period. Goldman Sachs also trimmed its holdings by approximately forty percent, leaving close to $1 billion invested in the product after the adjustment. Analysts interpret the mixed activity as portfolio rebalancing rather than loss of confidence, reflecting maturing institutional strategies around Bitcoin allocation.
