Wintermute: Long-Term Funds Are Buying BTC in OTC Tranches Amid ETF Outflows

Wintermute reports that long-term institutional funds are accumulating Bitcoin through OTC transactions with an 18-month investment horizon, while spot Bitcoin and Ethereum ETFs experience their longest outflow streak since launch with nearly $2 billion in combined withdrawals over ten days. The firm identifies $60,000-$65,000 as key support levels amid summer market weakness.

Wintermute's report reveals a critical divergence in Bitcoin market dynamics: while retail and short-term traders are exiting positions through ETF redemptions, sophisticated long-term capital is quietly accumulating BTC in over-the-counter markets. This split behavior suggests institutional confidence in Bitcoin's medium-to-long-term prospects despite near-term weakness, indicating that smart money views current price levels as attractive entry points for extended holding periods.

The ETF outflow streak represents a significant shift from the euphoria following spot Bitcoin ETF approvals earlier this year. Nearly $2 billion in combined withdrawals over ten consecutive days marks the longest sustained outflow period since these products launched, signaling diminished retail enthusiasm and possible profit-taking after substantial gains. This outflow dynamic typically precedes consolidation phases in crypto markets, where price discovery stabilizes before directional moves.

Wintermute's support level identification at $60,000-$65,000 provides crucial context for current risk management. These levels represent meaningful downside targets that align with previous resistance-turned-support zones, suggesting institutional traders have mapped critical price anchors. The juxtaposition of institutional buying pressure against ETF outflows creates an asymmetric setup where retail investors flee while informed capital accumulates—a pattern historically preceding strong recoveries.

The 18-month outlook from long-term funds indicates these investors are positioning beyond immediate macro headwinds and seasonal summer weakness. Market participants should monitor whether ETF outflows stabilize or accelerate, as sustained redemptions could test support levels, while institutional accumulation may ultimately absorb available supply and floor prices.

• →Long-term institutional funds are actively buying Bitcoin OTC with an 18-month investment horizon despite ETF outflows.
• →Combined spot Bitcoin and Ethereum ETF outflows reached nearly $2 billion over ten days—the longest streak since launch.
• →Wintermute identifies $60,000-$65,000 as critical support levels for Bitcoin amid summer market weakness.
• →The divergence between retail ETF selling and institutional OTC buying suggests a potential accumulation phase before recovery.
• →Crypto markets missed two consecutive weeks of equity market inflows, indicating sector-specific headwinds separate from macro trends.