Grayscale Investments has moved thousands of Bitcoin (BTC) to multiple addresses in 30 days, a move stirring speculation in the crypto community.
According to data insights shared by Ki Young Ju, the CEO of CryptoQuant, Grayscale transferred a total of 21,400 BTC out of its wallets. Coinbase exchange is one of the recipients of some of these transferred Bitcoins.
Grayscale Investments received approval for its request to convert the flagship GBTC into an active spot Bitcoin ETF last week, joining 10 others to make history after the Securities and Exchange Commission (SEC) greenlighted the product to end more than a decade’s struggle for the ETF.
Grayscale’s Bitcoin On-chain Activity
Grayscale’s foray into the ETF scene did not derail its Bitcoin on-chain activity in the past months. According to Ki Young Ju’s data, there has been a steady decline in the company’s Bitcoin balance from at least January 2021 to date.Â
While December 2023 saw the biggest monthly outflow from the Grayscale Bitcoin reserve since at least August 2019 to date, the outflows this week rank as the second largest, with about 2 weeks left to go.
A possible explanation for these withdrawals is a plausible liquidation or custody purposes. A look into the Grayscale Bitcoin ETF product shows that Coinbase is the listed custodian of its funds. Thus, the transfer of Bitcoin to Coinbase might be for safekeeping.
According to Ki Young Ju, the industry has seen over $579 million outflows from GBTC in two days and there is a possibility of witnessing an additional 8,000 BTC shifting position in the near future.
Bitcoin Price Reacts
Amidst these market trends, Bitcoin price has retained its extensive drawdowns, dropping by 0.63% in the past 24 hours to $42,678.45. The top cryptocurrency’s market cap is $836,660,846,138, with 24-hour trading volume pegged at $19,949,620,734, up by 17%.
Though the transfer of Bitcoin from the Grayscale Investments wallet is significant, it is not single-handedly responsible for the bearish outlook in the market at the moment. In all, market experts are still optimistic about a mega rally in Bitcoin as the spot ETF product gets properly priced in.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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