April 19, 2024
ETFs Accumulate BTC Amidst Grayscale January Sell-Off
Bitcoin News

ETFs Accumulate BTC Amidst Grayscale January Sell-Off

In January, the Grayscale Bitcoin Trust (GBTC) ETF experienced substantial Bitcoin sell-offs, shedding 132,195 BTC. The total Bitcoin holdings for GBTC decreased by 21%, falling from 619,220 BTC on January 11 to 487,025 BTC on January 31. In contrast, other non-GBTC ETFs took a different approach, actively accumulating Bitcoin. The combined holdings for these nine funds surged by 151,006 BTC during the same period, marking an increase of over 700%, from 18,390 BTC at the beginning of the month to 169,396 BTC by January 31.

Collectively, all ten spot Bitcoin ETFs held 656,421 BTC as of January 31, representing a 3% uptick from the initial total of 637,610 BTC. This amounted to a valuation of $27.7 billion at the time of reporting, according to CoinGecko. Publicly available data from issuers, including the updated information from BlackRock’s iShares Bitcoin Trust (IBIT), formed the basis for tracking these ETF holdings. IBIT, in particular, continued to increase its BTC holdings, adding 2,712 BTC on January 31.

However, data from the blockchain platform Arkham Intelligence contradicts the reported figures, specifically regarding IBIT. Arkham identified the on-chain addresses of six spot Bitcoin ETFs, including IBIT, and reported that BlackRock’s iShares Bitcoin ETF held 57,488 BTC. Discrepancies between the reported figures and blockchain data prompted inquiries for clarification from Arkham, with responses pending at the time of publication.

Despite the overall increase in Bitcoin holdings by 3% across all spot Bitcoin ETFs in January, the cryptocurrency experienced a significant price decline during the same period. Commencing the year at approximately $45,000, Bitcoin faced volatility, dropping below $39,000 on January 23. As of the latest data, Bitcoin is trading at $42,215, reflecting an 8% decrease over the past 30 days.

The introduction of spot Bitcoin ETFs in the U.S. was expected to be a major event, with analysts anticipating a “sell the news” reaction. ARK Invest CEO Cathie Wood had forecasted short-term selling following the approval of spot Bitcoin ETFs but expressed an optimistic long-term outlook for the market.

Photo by Karolina Grabowska

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