In the latest report, it has been revealed that Grayscale, a cryptocurrency asset management firm, has made significant Bitcoin transfers to various wallet addresses over the last month. This revelation comes after their Bitcoin trust was approved to be converted into an exchange-traded fund (ETF) by the SEC a few days ago.
Being one of the largest Bitcoin entities globally, the Grayscale Bitcoin Trust holds multi-billion dollar BTC across more than 1,750 wallet addresses, as discovered by Arkham Intelligence in September 2023.
The founder of CryptoQuant, Ki Young Ju, disclosed on the X platform that Grayscale moved approximately 21,400 BTC to various wallets in the last 30 days. This included sending some funds to Coinbase, the leading centralized exchange in the United States.
Notably, after the recent conversion of Grayscale Bitcoin Trust to a spot BTC ETF and the ETF’s approval on January 10, the firm’s fund flow has been under close observation. Following the ETF’s approval, the GBTC shares are now redeemable for Bitcoin.
On January 12, a day after the spot Bitcoin ETFs began trading in the US, Grayscale Bitcoin trust sent 894 BTC, valued at about $41 million, to Coinbase in a single transaction. This represented approximately 0.15% of GBTC’s entire holdings. Subsequently, on the same day, another $119 million in BTC was sent to different addresses, which led to the sudden downturn in the BTC price on that day, according to Arkham Intelligence data.
Famed crypto trader Ran Neuner agreed with the belief that investors selling their GBTC shares resulted in the sudden downturn of Bitcoin. He stated, “As soon as the redemption option opened, for the first time people are starting to exit – as they exit the Bitcoin must be sold on the market.”
For more details on the movement of Bitcoin by Grayscale, you can head over to the full article here.