Asset management firm Grayscale has been moving large amounts of Bitcoin to various wallet addresses over the past month, according to a recent report. This comes after the United States Securities and Exchange Commission (SEC) approved the firm’s application to convert its Bitcoin trust into a spot exchange-traded fund (ETF). The Grayscale Bitcoin Trust is considered one of the largest Bitcoin entities globally.
In September 2023, Arkham Intelligence, a crypto analytics platform, revealed Grayscale’s multi-billion dollar Bitcoin holdings across more than 1,750 wallet addresses. CryptoQuant’s founder Ki Young Ju disclosed that Grayscale moved approximately 21,400 BTC to different wallet addresses in the last 30 days. Some of these funds were sent to Coinbase, the largest centralized exchange in the United States.
The recent conversion of the Grayscale Bitcoin Trust to a spot BTC ETF has drawn attention to the firm’s funds movement. This is due to the fact that GBTC shares are now redeemable for Bitcoin following the ETF approval on January 10. Arkham Intelligence data revealed that Grayscale’s Bitcoin trust sent 894 BTC (about $41 million) to Coinbase in a single transaction on January 12, a day after the spot Bitcoin ETFs began trading in the US. This amount represents about 0.15% of GBTC’s total holdings.
On the same day, an additional $119 million in BTC was sent to other addresses. These fund outflows from Grayscale Bitcoin Trust are believed to have caused a sudden downturn in the price of BTC. Crypto trader Ran Neuner agreed with this belief, stating that the Bitcoin price is “dumping” as investors are selling their GBTC shares. He explained that GBTC held $25bn+ worth of Bitcoin that has been locked up for years with no option to be sold. As soon as the redemption option opened, people started to exit, leading to Bitcoin being sold on the market.
At the time of writing, the price of Bitcoin stands at $42,805, reflecting a 7% decline in the past 24 hours. The cryptocurrency has reversed most of its gains in the past week after initially falling to below $42,000 on Friday. CoinGecko data shows that Bitcoin’s price is down by about 2.5% in the last seven days. Despite this, BTC maintains its position as the largest cryptocurrency in the sector, with a market cap of $838 billion.
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This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Ran Neuner, Ki Young Ju |
| Companies | Coinbase, Arkham Intelligence, United States Securities and Exchange Commission, CryptoQuant, Grayscale |
| Currencies | Bitcoin |
| Securities | None |
