Grayscale Moves 31,638 BTC Following Spot Bitcoin ETF Approval
After the approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC), Grayscale has transferred approximately 31,638 BTC within its dedicated Coinbase accounts. This move comes after the approval of 11 spot BTC ETFs on January 10.
The transactions took place over three days, specifically on January 12, January 16, and January 17. These deposits were made into Coinbase Prime wallets from Coinbase custody accounts during the opening trading hours of the U.S. stock market.
Large Grayscale Deposits into Coinbase Accounts
Grayscale made significant deposits into Coinbase accounts. The first transaction involved 4,000 BTC worth $183 million. This was followed by a transfer of around 9,000 Bitcoins valued at $385 million. On the third day, over 18,000 BTC with a market value of $798 million was moved, marking the largest Grayscale Coinbase deposit since spot BTC ETFs were approved.
Outflows from Grayscale’s Converted BTC ETF
Simultaneously, Grayscale experienced nearly $1.2 billion in outflows from its converted BTC ETF as other similar funds saw billions in trading volume during the first few days. One possible reason for these outflows is Grayscale’s high 1.5% ETF fee.
Spot Bitcoin ETFs Outperform Other ETFs
Spot Bitcoin ETFs have surpassed other ETFs launched in the past year in terms of trading volume. Funds from issuers such as BlackRock, Bitwise, and VanEck had triple the trading volume compared to 500 ETFs released in 2023.
False Spot Bitcoin ETF Approval Message
The United States Government Accountability Office has recommended ways to improve internal control following a false spot Bitcoin ETF approval message. The SEC quickly deleted the untrue announcement and stated that an investigation with the FBI was underway. U.S. senators have demanded explanations regarding the source of the breach and are scrutinizing the SEC’s handling of the incident.
Hot Take: Grayscale Moves 31,638 BTC After Spot Bitcoin ETF Approval
Grayscale’s transfer of 31,638 BTC within its Coinbase accounts following the approval of spot Bitcoin ETFs by the SEC highlights the growing demand for cryptocurrency investment products. As more investors seek exposure to Bitcoin, ETFs provide an accessible avenue. However, Grayscale’s outflows from its converted BTC ETF suggest that investors may be deterred by the high 1.5% fee. Nevertheless, spot Bitcoin ETFs have proven to be highly successful, surpassing other ETFs launched in recent years. The false announcement of a spot Bitcoin ETF approval raises concerns about internal control and calls for further investigation.
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