Grayscale Bitcoin Trust Sends Significant BTC Outflow to Coinbase
Recent data from Arkham Intelligence reveals that Grayscale, the manager of the Grayscale Bitcoin Trust (GBTC), has been sending a substantial amount of Bitcoin to Coinbase since the launch of Bitcoin spot exchange-traded funds (ETFs). Four days ago, Grayscale initiated the first batch of BTC outflows totaling 4,000 BTC ($183 million). They resumed outflows on Tuesday, sending an additional 11,700 BTC ($491.4 million) to Coinbase. This selling pressure could potentially push the Bitcoin price lower.
Investors Withdraw Over Half a Billion Dollars from Grayscale Bitcoin Trust
According to Bloomberg, investors have withdrawn approximately $579 million from the Grayscale Bitcoin Trust during the initial days of trading as an ETF. In contrast, other spot Bitcoin ETFs saw inflows totaling nearly $819 million. The outflows from Grayscale’s ETF were somewhat expected, with Bloomberg Intelligence previously projecting over $1 billion in outflows in the coming weeks.
Investors Shift Capital to Lower-Cost Spot Bitcoin ETFs
Some investors may be profit-taking following the ETF conversion, leading to the outflows from Grayscale’s ETF. Bloomberg Intelligence predicts that a significant amount of capital will enter other Bitcoin exposures. Investors are shifting towards more cost-effective spot Bitcoin ETFs, with GBTC being the most expensive US ETF directly investing in Bitcoin. Other spot Bitcoin ETFs like BlackRock’s IBIT and Fidelity’s FBTC have seen net inflows, indicating strong demand for physically backed ETFs.
Bitcoin Price Remains Unaffected So Far
Currently trading at $43,100, the Bitcoin price has shown a slight increase of 0.8% over the past 24 hours. However, since the start of ETF trading, the price has retraced by 8% due to profit-taking and selling pressure. The market is closely watching Grayscale’s BTC selloff and its impact on the Bitcoin price leading up to the scheduled halving event in April.
Hot Take: Grayscale’s BTC Outflow Raises Concerns for Bitcoin Price
The recent outflows from the Grayscale Bitcoin Trust to Coinbase have raised concerns about the potential impact on the Bitcoin price. With significant amounts of BTC being sold, there is selling pressure that could push the price lower. Additionally, investors withdrawing over half a billion dollars from Grayscale’s ETF and shifting capital to lower-cost spot Bitcoin ETFs indicate a changing market landscape. It remains to be seen how these developments will affect the Bitcoin price in the coming weeks and months.
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