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100,000 BTC Acquired in the First Week: Two Firms Stack Up While Grayscale Offloads

A massive first week for Bitcoin ETF as firms move around thousands of coins 

In an impressive display of market momentum, nine spot Bitcoin Exchange-Traded Funds (ETFs) have collectively amassed over 100,000 BTC in just a week since their trading debut on January 11th. This swift accumulation starkly contrasts with Grayscale’s Bitcoin ETF, which offloaded more than 80,000 BTC shortly after its trading lunch. 

Among the leading ETFs, BlackRock's iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) stood out, securing large portions of Bitcoin, with Cryptostake reporting their combined holdings at 102,613 BTC.Valued at approximately $4.1 billion, this rapid investment signifies a robust entry into the cryptocurrency market.

Comparing ETFs' speed with MicroStrategy's BTC journey

The pace at which these Bitcoin ETFs have accumulated their holdings is not just remarkable but also unprecedented when compared to seasoned players like MicroStrategy. The tech firm, known for its substantial Bitcoin investments, took nearly 300 days to cross the 100,000 BTC mark, a milestone it announced in June 2021. 

In contrast, these nine ETFs, including heavyweights like BlackRock's IBIT and Fidelity's FBTC, achieved this feat in a mere seven days. This significant difference underscores the rapidly growing interest and investment velocity in the cryptocurrency sector. MicroStrategy, holding 189,150 BTC as of late December 2023, represents a long-term and steady investment approach, while these ETFs reflect a more dynamic and immediate market engagement.

Market impact: GBTC's sell-off and Bitcoin's price dynamics

Contrasting with the buying spree of the new ETFs, the Grayscale Bitcoin Trust (GBTC) has taken a different route, liquidating a staggering 82,526 BTC since its trading debut. This sell-off, valued around $3 billion, has markedly influenced Bitcoin's market price. From a high of over $48,000 on January 11, Bitcoin experienced a nearly 20% dip, hitting lows of $38,700 by January 23, as per CoinGecko data. 

Currently, Bitcoin hovers around $39,926, showing a modest recovery. Analysts link GBTC's significant selling activity to factors including the FTX estate's reported offloading of GBTC shares and GBTC's higher trading fees compared to other ETFs, which range between 0.2% and 0.4%.