The Bitcoin Community Misidentified the Owner of a $3 Billion BTC Wallet
Yesterday, news spread in the Bitcoin community that a $3 billion BTC wallet belonged to BlackRock, but it was later revealed to belong to Gemini. Here are the key points of the story:
– The wallet in question became the third-largest holder of BTC, accumulating 118,300 BTC worth $3.09 billion.
– Rumors of BlackRock’s involvement arose after a large transaction coincided with BlackRock’s application for a Bitcoin spot ETF.
– The timing of the wallet’s accumulation aligns with the market rally that followed BlackRock’s announcement.
– However, it was discovered that the wallet belongs to Gemini, the cryptocurrency exchange founded by the Winklevoss twins.
– The confusion was further compounded by on-chain tracking firm Nansen incorrectly attributing the wallet to Robinhood.
The Real Owner of the Wallet is Gemini, Not BlackRock
The latest news confirms that the 118,300 BTC wallet belongs to Gemini, not BlackRock. Some transfers from the exchange platform dated three months ago were sent to the wallet. It is common practice for exchanges to periodically send funds to new addresses for security reasons. The Bitcoin in the wallet represents the assets of Gemini’s users.
The Bitcoin Balance Sheets of Exchanges
Cryptocurrency exchanges have been accumulating Bitcoin since 2014, making them one of the largest holders of the cryptocurrency. In March 2020, exchanges collectively held 3.2 million BTC, equivalent to 15.23% of the maximum supply. However, as the market rallied and prices rose, exchanges decreased their holdings and sold to the market. Since November 2021, around 500,000 BTC have moved from exchange wallets to individual holders.
Hot Take
This incident highlights the importance of accurate information and the potential for misinformation in the crypto community. It also underscores the ongoing trend of individual holders taking control of their Bitcoin and moving it away from exchanges.
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