The Grayscale Bitcoin Trust (GBTC) exchange-traded fund (ETF) aggressively sold Bitcoin (BTC) in January, dumping over 130,000 BTC from its holdings. However, other spot Bitcoin ETFs in the US bought significantly more during the same period, adding over 140,000 BTC to their stashes. 

GBTC Reduced Holdings By 21%

According to public data, GBTC sold off a total of 132,195 BTC in January. This reduced its Bitcoin holdings by 21%, from 619,220 BTC on Jan. 11 to 487,025 BTC on Jan. 31.

The aggressive selling by GBTC came despite the launch of spot Bitcoin ETF trading in the US starting January 16. The long-awaited event was expected to drive more institutional investment into Bitcoin.

Other ETFs Increased Holdings Up to 674% 

While GBTC was dumping BTC, the other 9 spot Bitcoin ETFs actively bought up the slack. These funds collectively added 142,294 Bitcoin since starting trading. 

Some of the funds increased their BTC treasuries enormously in a very short period. For example, the Valkyrie Bitcoin Strategy ETF went from just 2,500 BTC on Jan. 16 to over 17,500 BTC by Jan. 31 - a massive 674% increase in holdings.

Overall, as of Jan. 31, the total BTC held by all 10 spot ETFs was 647,709. This represents a minor 1.6% increase from the 637,610 BTC they collectively held when trading commenced. The current stash is worth about $27 billion.

Bitcoin Price Dropped Over 8% In January

Despite the launch of spot Bitcoin ETF trading and the funds adding to their holdings, the price of BTC faced significant headwinds in January. After starting 2022 around $45,000, Bitcoin tumbled below $39,000 on Jan. 23 before recovering somewhat. Overall, BTC’s price dropped by about 8% in the last 30 days. It is currently trading around $42,200.

Many analysts see the introduction of spot Bitcoin ETFs as a "sell the news" event, at least in the short term. Some suggest continued pressure could come from the futures market. However, experts like Cathie Wood of ARK Invest see the long-term outlook as still positive.