9 spot Bitcoin ETFs buy 100K BTC in 7 days of launch

Grayscale’s Bitcoin (BTC) exchange-traded fund (ETF) dumped more than 80,000 BTC in just a few days after trading lunch, but other nine spot BTC exchange-traded funds (ETFs) have piled more than 100,000 BTC.

Nine spot Bitcoin ETFs — including Bitcoin ETFs like BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) — purchased 102,613 BTC in the first seven days after the trading launch on Jan. 11, according to ETF data tracked by Cointelegraph. The amount is worth around $4.1 billion at the time of writing, according to CoinGecko.

The amount of Bitcoin purchased by spot Bitcoin ETFs in only seven trading days accounts for 53% of all Bitcoin amassed by the giant BTC investor MicroStrategy over the past three years. According to MicroStrategy’s most recent BTC acquisition report, the firm held an aggregate of 189,150 BTC as of Dec. 26, 2023.

After starting to buy Bitcoin in August 2020, MicroStrategy crossed the 100,000 BTC mark in roughly 300 days, announcing it held 105,085 BTC in June 2021.

According to publicly reported data, BlackRock’s IBIT and Fidelity’s FBTC became the largest Bitcoin buyers among spot BTC ETFs since the trading launch, collecting 37,304 BTC and 29,232 BTC, respectively. The Bitwise Bitcoin ETF (BITB) and the ARK 21Shares Bitcoin ETF (ARKB) come next, buying 16,451 BTC and 10,630, respectively.

Unlike other Bitcoin ETFs, Grayscale Bitcoin Trust ETF (GBTC) — the largest Bitcoin ETF by BTC holdings — has been actively selling BTC since its trading launch, dumping 82,526 BTC. The amount is worth about $3 billion at the time of writing.

Related: Guessing game on GBTC bleeding stops helps push Bitcoin below $39K

The massive GBTC selling has triggered a significant drop in the price of Bitcoin, with the cryptocurrency plummeting nearly 20% from above $48,000 on Jan. 11 to as low as $38,700 on Jan. 23, according to data from CoinGecko. At the time of writing, Bitcoin is trading at $39,926, up 1.8% over the past 24 hours.

9 spot Bitcoin ETFs buy 100K BTC in 7 days of launch
Bitcoin (BTC) price 30-day price chart. Source: CoinGecko

Some industry observers linked GBTC selling to the estate of the collapsed FTX crypto exchange dumping $902 million in GBTC shares.

Many analysts also suggested that GBTC’s high trading fees triggered the outflows. As previously reported, GBTC charges as much as 1.5% for trading fees without waivers, while other ETF sponsors set fees between 0.2% and 0.4%, also offering temporary waivers.

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