Grayscale Triggers New Selling Concerns by Moving $623M in Bitcoin to Coinbase

Grayscale Investments has transferred an additional $623 million worth of Bitcoin to Coinbase, prompting concerns of a potential sell-off.

On the X platform, Lookonchain, a blockchain analytics platform, presented the extent of Bitcoin (BTC) unit transfers from Grayscale Investments, an asset management firm, to Coinbase Custody.

This movement followed the approval by the United States Securities and Exchange Commission (SEC) of Grayscale’s application, along with those of ten other ETF issuers.

Grayscale Sustains its Series of Transfers
To date, Grayscale has placed a cumulative total of 63,991 Bitcoin into its holdings, with a market value surpassing $2.68 billion based on the current coin price.

The latest deposit, consisting of 15,308 BTC sent to Coinbase Prime and valued at around $625.8 million, was officially recorded today. Importantly, this consistent trend of transfers has persisted since the launch of the new product more than a week ago.

Following its dominance in the spot Bitcoin ETF market in terms of trading volume on the initial trading day, Grayscale initiated the process of moving its Bitcoin holdings.

Initially, concerns among many customers arose, suspecting the asset manager of selling off its BTC, which was linked to the observed decline in Bitcoin’s price.

However, it appears that a significant portion of the BTC may have been directed to Grayscale’s custodian for secure storage.

Following the SEC’s approval of spot Bitcoin ETF products, it was revealed that Grayscale had executed transfers of over 21,400 BTC, totaling more than $900 million, within the last 30 days. These deposits were reportedly directed to various addresses across crypto exchanges, including Coinbase.

During a similar timeframe, Grayscale directed a transfer of 4,000 BTC valued at $183 million to a deposit address on Coinbase Prime, introducing a diverse aspect to the fund allocations.

Grayscale Faces a Worrisome Capital Exodus
Recently, there was a noteworthy deposit from Grayscale, involving a substantial 9,000 Bitcoin units valued at $385 million. The transfers occurred through nine transactions, each involving 1,000 BTC, and notably, all transactions were initiated simultaneously.

According to Arkham Intelligence, Grayscale presently holds approximately 549,116 Bitcoin, equivalent to $22.32 billion. Regarding recorded net outflows for its GBTC, Grayscale has observed transfers exceeding $2.2 billion, with almost $580 million flowing out on the fifth trading day for spot Bitcoin ETFs.

Despite this, the asset manager has implemented a new marketing strategy to address this challenge, and based on the substantial inflows recorded on the sixth trading day, it appears the decision is proving successful.

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