Grayscale Continues Transferring Bitcoin to Coinbase Custody
Grayscale Investments has transferred a total of 63,991 Bitcoin, valued at over $2.68 billion, to Coinbase Custody since the approval of its ETF application by the SEC. The most recent deposit of 15,308 BTC, worth approximately $625.8 million, was recorded today. This transfer trend has been ongoing since the launch of the new product.
Initially, there were concerns that Grayscale was dumping its BTC holdings when it started transferring Bitcoin after leading the spot Bitcoin ETF market in trading volume on the first trading day. However, it appears that most of the BTC has been sent to Grayscale’s custodian for safekeeping.
Within the last 30 days, Grayscale transferred more than 21,400 BTC worth over $900 million to different crypto exchanges, including Coinbase. Additionally, they transferred 4,000 BTC worth $183 million to a Coinbase Prime deposit address.
Concerns about Grayscale’s Capital Outflows
Last week, Grayscale made another significant deposit of 9,000 Bitcoin units worth $385 million. These transfers were made in nine transactions with 1,000 BTC sent in each case. Currently, Grayscale holds about 549,116 Bitcoin worth $22.32 billion.
Grayscale has seen net outflows of over $2.2 billion for its GBTC, including an outflow of almost $580 million on the fifth trading day for spot Bitcoin ETFs. To address this issue and improve inflows, the asset manager has implemented a new marketing strategy that seems to be yielding positive results.
Hot Take: Grayscale’s Continued Transfers Signal Confidence in Custodian Security
Grayscale’s consistent transfer of Bitcoin to Coinbase Custody indicates their confidence in the security provided by their custodian. Despite initial concerns about asset dumping, it appears that Grayscale is prioritizing the safety of their BTC holdings. These transfers also demonstrate Grayscale’s commitment to transparency and accountability as they navigate the evolving crypto market.
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