May 29, 2024
Nine Spot Bitcoin ETFs Amass 100,000 BTC
Bitcoin ETF

Nine Spot Bitcoin ETFs Amass 100,000 BTC

Grayscale’s Bitcoin (BTC) exchange-traded fund (ETF) saw a significant downturn, shedding more than 80,000 BTC shortly after trading commenced, while nine other spot BTC ETFs accumulated over 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. 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.

MicroStrategy, after initiating Bitcoin purchases in August 2020, surpassed the 100,000 BTC milestone in approximately 300 days, revealing it held 105,085 BTC in June 2021.

According to publicly reported data, BlackRock’s IBIT and Fidelity’s FBTC emerged as the leading Bitcoin buyers among spot BTC ETFs since the trading launch, acquiring 37,304 BTC and 29,232 BTC, respectively. The Bitwise Bitcoin ETF (BITB) and the ARK 21Shares Bitcoin ETF (ARKB) followed suit, purchasing 16,451 BTC and 10,630 BTC, respectively.

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

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.

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.

Photo by Karolina Grabowska

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