Grayscale Moves Bitcoin Amid Spot Bitcoin ETF Speculation
Following the approval of spot Bitcoin ETFs by the SEC, Grayscale has been transferring Bitcoin to various addresses, including crypto exchanges, over the past month. This move comes after SEC Chair Gary Gensler acknowledged that Grayscale’s legal victory played a significant role in approving spot Bitcoin ETFs.
GBTC Outflows During Spot Bitcoin ETF Launch
The first day of spot Bitcoin ETF trading saw a strong total trading volume of $4.6 billion. However, experts believe that the inflow of Bitcoin was lower than expected, with GBTC experiencing an outflow of $95 million. The total net flow into the new ETFs on that day amounted to $625.8 million.
On the second day of spot Bitcoin ETF listing, GBTC outflows reached $484 million, and the total outflows in the previous two days amounted to $579 million according to BitMEX Research data.
Grayscale’s BTC Movements
CryptoQuant founder and CEO Ki Young Ju revealed that Grayscale has moved 21,400 BTC worth over $900 million in the last 30 days. These bitcoins were sent to multiple addresses, including Coinbase, suggesting that holders are selling their assets in anticipation of spot Bitcoin ETF approval.
A breakdown of outflows from Grayscale wallets shows recent changes in the Grayscale BTC reserve wallet balance. Grayscale transferred 4,000 BTC worth $183 million to a Coinbase Prime deposit address. This could be attributed to investors switching their assets to other spot Bitcoin ETFs with lower fees.
Bitcoin Price Decline and Decreased Trading Volume
In the past 24 hours, BTC price has dropped by over 6%, currently trading at $42,846. The 24-hour low and high are $0.643 and $0.664, respectively. Additionally, trading volume has decreased, indicating a decline in trader interest.
Hot Take: Grayscale’s Bitcoin Movements and the Spot Bitcoin ETF Launch
Grayscale’s recent movements of Bitcoin to various addresses, including crypto exchanges, have raised questions about the impact of the spot Bitcoin ETF launch on market dynamics. The outflows from GBTC and the decrease in BTC price suggest that investors may be adjusting their positions in anticipation of the new ETFs. As the spot Bitcoin ETF market continues to evolve, it will be interesting to see how Grayscale’s actions and market sentiment shape the future of cryptocurrency investments.
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