Bitcoin ETF provider Grayscale has provided some illustrative details of its spin-off fund, the Bitcoin Mini Trust (BTC), including a more competitive 0.15% fee than the uplisted mothership GBTC product, according to a pro forma financials in its latest filing.
Bitcoin Stable Near $71K as GBTC Outflows Pick Back Up
The Thursday total ETF flow was negative, with GBTC leading the pack
Grayscale CEO Says Bitcoin ETF Outflows Are Reaching Equilibrium: Reuters
Sonnenshein said that some of the selling connected to settlements of bankrupt crypto companies like FTX are “largely behind us.”
Genesis Completes Redemption of GBTC Shares, Buys 32K Bitcoins with Proceeds
The company in February got permission from a New York bankruptcy court to sell approximately 36 million shares of Grayscale’s Bitcoin Trust.
Crypto Market Remains Focused on Spot Bitcoin ETF Flows Over Fundamentals: Coinbase
There were $836 million in net outflows between March 18 and March 21, the report said.
US Spot Bitcoin ETFs Experience Record Outflows, Losing $740 Million In Three Days
The 10 spot Bitcoin ETFs experienced their biggest three-day outflow since their debut in January, as reported by Bloomberg. This shift in investor sentiment comes after heightened interest that propelled the largest cryptocurrency in the market to a record high of $73,700.
Bitcoin ETFs See Record Outflows
Between Monday and Wednesday, a net total of $742 million exited the Bitcoin ETFs, reflecting outflows from the Grayscale Bitcoin Trust (GBTC) and a moderation in subscriptions for similar offerings from prominent firms like BlackRock (IBIT) and Fidelity Investments (FBTC).
According to Bloomberg ETF expert Eric Balchunas, the Grayscale Bitcoin Trust has experienced a notable outflow surge. This recent development indicates a “second wind” of investor withdrawals, with a substantial $1.4 billion leaving the trust just this week.
Notably, these withdrawals have surpassed all other ETFs in year-to-date outflows and set a new record for cumulative outflows in ETF history, as shown in the chart above.
Nevertheless, GBTC continues to hold a prominent position in terms of revenue generation. It currently ranks third out of the 3,400 ETFs available, demonstrating its continued financial success.
Despite the recent outflows, the overall performance of these funds remains noteworthy, with net inflows of $11.4 billion recorded since their launch, according to data compiled by Bloomberg. This signifies one of the most successful debuts for an ETF category.
Crypto Analyst Predicts “Massive Bounce” For BTC
Bitcoin experienced a significant surge of over 5% in the United States on Wednesday, propelled by signals from the Federal Reserve (Fed) hinting at potential interest-rate cuts.
However, the Asian market painted a different picture on Thursday, with Bitcoin losing momentum compared to continued gains in global stocks and gold. According to Bloomberg, the news of outflows from Bitcoin ETFs permeated markets, contributing to the contrasting performance.
Nonetheless, renowned crypto analyst Michael van de Poppe shared a bold prediction on social media platform X (formerly Twitter). In his post, he expressed optimism about a “massive bounce” for Bitcoin, suggesting the potential for a continuation of its upward trajectory.
Van de Poppe also predicted that Bitcoin could consolidate in the near term before embarking on another rally towards the all-time high it reached before the halving event, which is expected to begin sometime in April.
Currently, BTC is trading at $66,200, reflecting a 4% increase in the past 24 hours despite ongoing outflows in the ETF market. Over longer time frames, Bitcoin has shown consistent gains, with a 27% increase over the past thirty days and an impressive 136% gain year-to-date.
Featured image from Shutterstock, chart from TradingView.com
Record-Breaking GBTC Outflows Send Bitcoin Down 14% To $62,000
As reported by Fortune Magazine, the cryptocurrency market has been experiencing significant volatility as Bitcoin (BTC) has experienced a sharp decline that has had a domino impact on other cryptocurrencies. The recent drop in the price of Bitcoin, coupled with outflows from Grayscale’s GBTC, has raised concerns among investors.
Bitcoin Sees 14% Correction From ATH
Bitcoin suffered a 14% drop since reaching its all-time high (ATH) of $73,700 last week, briefly touching $62,483 on Tuesday morning. However, it recovered and stabilized around $64,900, just below the $65,000 mark.
The decline was attributed to record outflows of over $640 million from Grayscale’s Bitcoin Trust (GBTC). In comparison, other spot Bitcoin ETFs saw inflows of less than $500 million, resulting in a net outflow of $15 million on Monday, according to Bloomberg ETF expert James Seyffart.
This outflow from GBTC, combined with the cautious sentiment surrounding the Federal Open Market Committee (FOMC) meeting in the US, has had a significant impact on Bitcoin’s performance.
As recently reported by NewsBTC, investors exhibited caution ahead of the FOMC meeting, closely monitoring the potential changes in interest rates. Recent higher-than-expected inflation data, as indicated by the US Consumer Price Index (CPI) and Producer Price Index (PPI), dampened expectations of interest rate cuts.
According to Fortune, the CME FedWatch Tool projected a 99% likelihood of rates remaining unchanged, further affecting market sentiment. Per the report, investors were keen to gauge the Federal Reserve’s stance on monetary policy, contributing to the cautious trading environment.
In the same context, the Bank of Japan raised its key interest rate from -0.1% to 0% to 0.1% in response to rising consumer prices. This was the first rate increase in 17 years.
Crypto Futures Traders Take A Hit
The drop in Bitcoin’s price had a cascading effect on other cryptocurrencies. Major altcoins like Ethereum (ETH) and Solana (SOL) experienced significant declines of 8.1% and 12.5% over the past 24 hours, respectively.
Meme coins, including Floki Inu (FLOKI), Bonk Inu (Bonk), and Dogecoin (DOGE), also suffered losses of 34%, 28.5%, and 24.8%, respectively, during the past week.
The decline in cryptocurrency prices resulted in over $440 million worth of liquidations for traders of crypto futures. Traders who had leveraged positions betting on higher prices faced significant losses. Most of these liquidations occurred on Binance, totaling $212 million, followed by OKX at $170 million.
Despite its price correction, BTC retains substantial gains of over 26% and 132% in the past thirty days and year-to-date timeframe, respectively.
Featured image from Shutterstock, chart from TradingView.com
Grayscale CEO Believes Bitcoin ETF Fees Will Drop Over Time: CNBC
GBTC has seen $12 billion in outflows since due in part to its high fees compared to its competitors.
Bitcoin Hits $52,000 High: Are These Giant Sell-Offs About To Crash The Crypto Party?
According to a recent report from Spot On Chain, Bitcoin might be on the edge of a notable plunge. So far, the flagship cryptocurrency has recently broken through the $52,000 mark and traded above it for the first time since December 2021.
However, Spot On Chain reveals that Bitcoin faces potential challenges that could affect its immediate market performance. Two significant sell-off events loom on the horizon, potentially influencing Bitcoin’s price dynamics in the short term.
These developments have sparked speculation, prompting a closer examination of their possible impacts on the cryptocurrency market.
Major Bitcoin Sell-Off Events On The Horizon
The first of these events involves Genesis, a prominent crypto asset manager authorized to offload a significant portion of its Grayscale Bitcoin Trust (GBTC) shares. The second event is marked by the US government’s announcement to sell some of its Bitcoin holdings acquired from the Silk Road platform.
Genesis has received approval to sell 35 million GBTC shares, estimated to be worth around $1.3 billion. This occurrence mirrors an earlier liquidation event involving FTX, which notably impacted Bitcoin’s market price, illustrating the potential volatility such moves can introduce.
It is worth noting that the upcoming Genesis sell-off represents a significant moment for Bitcoin, as it tests the resilience of its recent price gains against the backdrop of large-scale disposals.
The #Bitcoin price has been on the rise for the past 7 days and finally broke the $52K mark again after 2 years!
However, there are two impending big threats to the short-term $BTC price. Can it overcome?
1. #Genesis was approved to sell 35M Grayscale Bitcoin Trust shares… pic.twitter.com/Qn7wbQXaDa
— Spot On Chain (@spotonchain) February 15, 2024
The US government’s decision to auction off 2,875 BTC, valued at $150.6 million, adds to the market’s cautious outlook. With the government holding one of the largest Bitcoin reserves globally, its actions have a marked influence on market perceptions and the cryptocurrency’s price stability.
Spot On Chain highlighted historical instances, such as the sale of 8.2K BTC through Coinbase, which have shown that government sell-offs can temporarily lead to fluctuations in Bitcoin’s price.
Optimism Amid Uncertainty
Despite these concerns, certain segments of the crypto community view these events as minor hurdles in the broader trajectory of Bitcoin’s growth.
Non event… ETFs buying in 300-500m a day lol
— Cryptamurai
I County Capital (@cryptamurai) February 15, 2024
Notably, the increasing involvement of Bitcoin spot exchange-traded funds (ETFs) in the Bitcoin market suggests a growing institutional interest that could offset the effects of the sell-offs.
CryptoQuant has recently highlighted that roughly 75% of new investments into Bitcoin are coming from spot ETFs. This is quite evident as BitMex research reported that the Bitcoin spot ETF market saw an inflow of over $340 million yesterday.
Bitcoin Spot ETF Flow – 14th Feb 2024
All data in. Another strong day, with +$340m net flow for all the Bitcoin ETFs pic.twitter.com/xy7t1hGhyw
— BitMEX Research (@BitMEXResearch) February 15, 2024
Featured image from Unsplash, Chart from TradingView
Blackrock, Fidelity Bitcoin ETFs Have a Liquidity Edge Over Grayscale: JPMorgan
GBTC is expected to lose further funds to newly created ETFs unless there is a meaningful cut to its fees, the report said.
Bitcoin ETFs Experience Day 12 Reversal, GBTC Selling Slows, Fidelity And Blackrock Garner $400 Million
Bitcoin has witnessed a positive turn of events as it reclaimed the $43,000 mark on Tuesday, thanks to a significant reduction in selling pressure from asset manager Grayscale. The reversal in Bitcoin ETFs during day 12 of trading has seen more inflows than outflows. Fidelity and Blackrock recorded a combined $400 million across their Bitcoin ETFs under the ticker names FBTC and IBIT, respectively.
Bitcoin ETFs Record Third-Largest Money Day
According to market expert James Mullarney, Grayscale Bitcoin Trust (GBTC) has experienced a noticeable reduction in selling pressure, as reflected by the slowing down of GBTC selling.
Day 12 of trading showed a substantial inflow compared to outflow, marking the third-largest money day ever in net money flow, bringing in $256 million.
Mullarney further states that adding new Bitcoin ETFs has contributed to a net positive of $1 billion in ETFs, with an estimated 25,000 Bitcoin added to the market. The new Bitcoin ETFs now hold a total of 150,000 BTC in aggregate.
Miners Sell Most Coins Since May 2023
Despite these positive developments with Bitcoin ETFs, there is an ongoing increase in selling pressure from miners. A recent CryptoQuant report reveals that miners have sold the most coins since May 2023.
The flow of coins from miner wallets to spot exchanges reached its highest value since May 16, 2023, with over 4,000 Bitcoin amounting to approximately $173 million in selling pressure.
Although miners have increased their selling activity, CryptoQuant asserts that the market has absorbed this pressure “calmly”. It is important to note that the reserves in mining portfolios have remained at the same level since the beginning of January.
CryptoQuant highlights that it is crucial to consider that these actions do not necessarily indicate a “dump” by miners. The firm concluded:
It is true that there were several interactions with exchanges during this period, some quite significant, but this does not correspond to a “dump” on the part of these entities. Furthermore, it is necessary to be careful when reading messages like “miners are dumping coins”, this analyzes may not take into account the return of these coins to miners’ wallets.
New All-Time High For Bitcoin After November?
Renowned crypto analyst, CryptoCon, cautions against the belief that “this time is different” for Bitcoin, highlighting the recurring nature of its market cycles. With three completed cycles and a fourth underway, CryptoCon emphasizes that historical patterns, including the launch of Bitcoin ETFs, have consistently influenced Bitcoin’s price trajectory.
CryptoCon emphasizes that Bitcoin’s price movements have followed distinct cycles, and he warns against the notion that each cycle will deviate significantly from the preceding ones.
Despite the anticipation surrounding the launch of ETFs, historical evidence suggests that they have coincided with local price highs rather than instant new all-time highs.
CryptoCon argues that the repeated occurrence of such patterns should serve as a reminder that “this time is different” often proves to be an illusory belief.
According to CryptoCon’s analysis, a period of sideways movement is expected to commence soon after the completion of the ongoing correction, which saw BTC retrace to the $38,500 level on Tuesday, January 23.
This phase is predicted to last approximately four months, culminating in a second early price peak in June 2024, according to Crypto Con.
Following this, the analyst foresees the possibility of new all-time highs occurring after November 28th, 2024. However, it is crucial to note that the cycle’s peak will occur within approximately 21 days from this date, around November 28th, 2025.
Featured image from Shutterstock, chart from TradingView.com
Bitcoin ETF Flows Show Negative Trend For First Time Since Launch
The group of recently launched spot bitcoin exchange-traded funds (ETFs) are seeing combined negative flows for the first time since they opened for trade on Jan. 11 as money moving into funds like BlackRock’s IBIT and Fidelity’s FBTC has failed to keep pace with the exits from Grayscale’s GBTC.
Bitcoin ETF Day 8 Update: Market Rebound Signals Bottom As Grayscale Selling Slows Down
Since the approval of Bitcoin ETF applications by the US Securities and Exchange Commission (SEC) on January 11, followed by the commencement of trading a day later, the ETF race has witnessed impressive trading volumes on each trading day.
As the market recovers from a sharp correction, recent developments indicate a notable slowdown in Grayscale selling, which could potentially signal a rebound for the Bitcoin price following the recent 20% drop.
Market expert James Mullarney and Bloomberg ETF expert Erich Balchunas provide key insights into Bitcoin ETF fund flows after 8 days, shedding light on the evolving dynamics and investor sentiments surrounding this development.
Hope For Bitcoin Bulls
One of the key observations made by James Mullarney is the deceleration in Grayscale’s selling activities. While Grayscale continues to sell, the pace of their selling has significantly reduced, indicating a potential shift in their strategy.
This is seen as a positive sign for the market, as a slowdown in Grayscale selling could contribute to stabilizing Bitcoin prices and restoring investor confidence.
Amidst this backdrop, major players in the asset management industry, such as BlackRock and Fidelity, have showcased their resilience and commitment to Bitcoin.
BlackRock, one of the world’s largest asset managers, currently holds 44,000 BTC in assets under management (AUM), indicating their growing exposure to the cryptocurrency.
Similarly, Bitcoin ETF issuer Fidelity, renowned for its digital asset services, stands strong with 40,000 BTC AUM, demonstrating their continued confidence in Bitcoin and its long-term potential.
Moreover, the dynamics of the recent sell-off are noteworthy. The majority of the selling pressure observed in the market involved FTX, which completed day 8 of trading.
However, as the market enters day 9, the expectation is for a significant reduction in selling pressure from FTX and Grayscale, potentially contributing to a more stable market environment, according to Mullarney.
The emergence of Bitcoin ETFs as significant holders of the cryptocurrency is another positive aspect to consider. ETFs have not only absorbed the 101,600 BTC sold by Grayscale but have also increased their holdings by an additional 21,100 BTC in just 8 days.
According to Mullarney, this indicates growing institutional interest in Bitcoin, as ETFs continue to accumulate significant amounts of the cryptocurrency.
Bitcoin ETF Issuers Counter Grayscale Selling
Despite Grasycale’s selling spree, Mullarney highlights that the Bitcoin ETF managers alone are acquiring 15 times the daily Bitcoin supply, surpassing 13,444 BTC against the 900 BTC daily creation rate.
This notable inflow of BTC demonstrates the strong demand from institutional investors and highlights the potential impact of ETFs on the overall Bitcoin market.
Interestingly, the new ETFs have absorbed a net total of 122,000 BTC in just 8 days, overcoming the impact of Grayscale’s release and contributing to a positive net inflow.
Bloomberg ETF expert Erich Balchunas adds further insights to the analysis. Balchunas notes that the volume of Grayscale Bitcoin Trust (GBTC) has decreased, which could be a sign of exhaustion in selling.
However, $515 million was withdrawn from GBTC yesterday, resulting in a total outflow of $3.96 billion since its conversion to an ETF. On a more positive note, there was a net inflow of $409 million on the ninth day, indicating renewed investor interest.
Featured image from Shutterstock, chart from TradingView.com
Grayscale’s GBTC Has Moved More Than 100K BTC to Exchange Since Spot Bitcoin ETF Launch
Outflows from the Grayscale Bitcoin Trust have topped $1 billion per day this week.
Bitcoin Price At Risk? Grayscale’s $335M Coinbase Transfer Stirs $30,000 Plunge Potential
The Bitcoin price has experienced a notable shift as selling pressure mounts, with BTC bears gaining the upper hand. Asset manager Grayscale, the owner and manager of the Grayscale Bitcoin Trust (GBTC), is a significant contributor to this trend.
Since the trading of spot Bitcoin exchange-traded funds (ETFs) began on January 12, Grayscale has been on a selling spree, as evidenced by substantial transfers of BTC to the United States-based crypto exchange Coinbase.
Bitcoin Price Under Pressure As Grayscale Selling Spree Continues
According to Akrham Intelligence data, in addition to the previously reported 69,994 BTC ($2.9 billion) transfers, Grayscale sent an additional 8,593,075 BTC (approximately $335.19 million) to the exchange on Tuesday, suggesting the possibility of further selling activities.
These developments have affected the Bitcoin price, which has experienced a significant downtrend, declining by 20% over the past week and a half.
On Tuesday, the largest cryptocurrency dropped as low as $38,500, placing considerable pressure on a crucial support level. Despite the bearish pressure, the $38,500 support level has demonstrated resilience so far, with the cryptocurrency rebounding to $39,300 at the time of writing.
Nevertheless, the duration of Grayscale’s selling spree remains uncertain, and if market sentiment continues to turn negative, Bitcoin could potentially revisit the $30,000 mark. This figure is just above the key $29,000 level that marked the beginning of the bull run that took Bitcoin to its 22-month high of $49,000 on January 11th.
Bears On The Rise
If the $38,500 threshold succumbs to Grayscale’s selling pressure and profit-taking, market observers should closely monitor the $37,750 level as the next resistance.
Failure to hold above this level would open the door to a potential decline toward the major resistance at $35,600, which could further prevent a dip to the next support level at $33,000.
However, if these support levels are breached and the Bitcoin price continues its downtrend, the next significant key levels to watch for bullish momentum would be $29,000 to $30,000. A breakdown below these levels could signal an end to the current bull market structure and grant the bears the upper hand in the mid-term, at least until the anticipated halving event in April.
Historically, halving events have acted as major catalysts for the Bitcoin price, and their influence has been demonstrated.
As the Bitcoin market faces intensified selling pressure and Grayscale’s ongoing selling spree, market participants remain cautious about the potential for a significant price plunge. The coming days and weeks will be critical in determining whether Bitcoin can regain its bullish momentum or if it will succumb to further downward pressure.
Featured image from Shutterstock, chart from TradingView.com
Bitcoin Unphased by China’s Stimulus Plan
Hong Kong’s Hang Seng Index and the CSI 300 both responded to Beijing’s plan to reboot China’s domestic stock market, but bitcoin remains in the red.
Analyst Foresees Bitcoin Downtrend Until GBTC Is Liquidated
Chris J Terry, a cryptocurrency analyst and enthusiast, has revealed his insights on the price action of Bitcoin, predicting a continuous decline in the price of the crypto asset.
Analyst Says Bitcoin Will Continue To Drop
The crypto analyst shared his insights regarding Bitcoin with the cryptocurrency community on the social media platform X (formerly Twitter), anticipating a possible “continuation of a flat or declining trend.”
He highlighted that the downtrend will continue until Grayscale Bitcoin Trust (GBTC) is fully “liquidated.” According to him, the liquidation will be possible with a whopping $25 billion worth of selling activity over the next few weeks.
Terry cites Grayscale’s choice to keep Bitcoin ETF fees at 1.5% as the cause of what he sees to be the “biggest strategic error” in cryptocurrency history. This implies that Grayscale’s action might have a long-term impact on the crypto market and may prevent wider adoption.
The post read:
Looks like the BTC price will continue flat/down until GBTC is liquidated, $25B of selling over the next few weeks. Grayscale decision to keep ETF fees at 1.5% will go down as the biggest strategic error in crypto history. Greedy idiots.
His analysis emphasizes how investment vehicles are interconnected and how this affects the state of the cryptocurrency market as a whole. However, this has attracted disbelief from a few famous figures in the community.
One of the figures who has expressed disbelief is Galaxy Digital CEO Mike Novogratz. He asserted that he “disagrees” with Chris Terry’s analysis because although Novogratz experts some selling pressure activity, he believes investors will move to other ETFs, especially supporting BTCO. Novogratz also pointed out that the Invesco Galaxy Bitcoin ETF (BTCO) is his favorite among the products.
Furthermore, Novogratz highlights the significance of maintaining perspective in light of transient market conditions. He noted that the latest development will facilitate older investors’ or boomers’ entry into the crypto landscape.
In addition, he has highlighted the potential for enhanced leverage by having 4×5 exposure to Bitcoin via BTCO. He then shared an optimistic look, noting that “BTC will go higher in the next six months after this indigestion.”
BTC Sees $25 Million Outflows
A recent report from Coinshares has revealed that Bitcoin witnessed an outflow of a whopping $25 million. Coinshares shared the information in its most recent weekly “Digital Asset Fund Flows.”
It also noted a massive $11.8 billion in BTC trading volume last week. According to Coinshares, this is seven times more than the average weekly trading activity recorded in 2023.
There were notable withdrawals from digital asset investment products last week, totaling about $24.7 million. Notably, this spike in trading activity indicates that ETFs account for 63% of all Bitcoin volumes on reliable exchanges.
As of the time of writing, Bitcoin was trading at $40,827, indicating a decline of 2.16% in the past day. Despite the price drop, its trading volume is currently up by over 81% in the last 24 hours.
Bitcoin ETF Makes Waves: Volumes Surge $10 Billion 3 Days
Bitcoin Spot Exchange-Traded Funds (ETFs) have once again garnered the attention of crypto enthusiasts and investors as the products have witnessed a whopping $10 billion in total trading volume in the first three days of trading.
Bitcoin Spot ETF Sees Significant Uptick In Day 3 Trading
The development was revealed by Bloomberg Intelligence analyst James Seyffart on the social media platform X (formerly Twitter). The information shared by the analyst demonstrates a firm desire for exposure to digital assets via regulated financial markets.
Seyffart’s X post delves in on the data from the “Bitcoin ETF Cointucky Derby.” According to the analyst, “ETFs traded almost $10 billion in total over the past 3 days.”
The analyst also provided a virtual record of the data to further elaborate on the substantial trading volume. With a total volume of over $5 billion, Grayscale Bitcoin Trust (GBTC) stands out as the top performer among the notable financial firms.
Meanwhile, iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC) come next in line. The data shows that the financial firms witnessed an overall trading volume of $1.997 billion and $1.479 billion, respectively.
ARK’s 21Shares ETF (ARKB) and Bitwise Bitcoin ETF (BTTB) followed behind with a substantial total trading volume of $568 million and $258 million, respectively. This spike in trading volume indicates that both institutional and individual investors are growing more at ease utilizing traditional investment engines to trade BTC.
Although Grayscale’s Bitcoin fund continues to gain the highest overall trading volume, the fund has seen significant withdrawals from investors seeking to lower their exposure.
There have been withdrawals totaling more than $579 million since Grayscale started trading on January 11. Currently, Grayscale is still considered the “Liquidity King” of the Bitcoin spot ETFs.
However, Bloomberg analyst Eric Balchunas anticipates that Blackrock might oversee Grayscale to claim the title. “IBIT keeping lead to be one most likely to overtake GBTC as Liquidity King,” he stated.
3-Day Trading Surpassed 500 ETFs In 2023
Following the report, Eric Balchunas has provided a context for the massive surge of these products. The analyst did so by comparing the trading volume of BTC ETFs to all the ETFs that were launched in 2023.
“Let me put into context how insane $10b in volume is in the first 3 days. There were 500 ETFs launched in 2023,” Balchunas stated. According to him, the 500 ETFs completed a $450 million combined volume today, and the best one did $45 million.
In addition, Balchunas highlighted that Blackrock‘s BTC ETF demonstrates a better performance than the 500 ETFs. “IBIT alone is seeing more activity than the entire ’23 Freshman Class,” he stated. It is noteworthy that half of the ETFs launched in 2023 recorded an overall trading volume of “less than $1 million” today.
Balchunas also stressed the difficulty in acquiring volume, noting that it is harder than flows and assets. This is because the volume has to come genuinely in the marketplace, which gives an “ETF lasting power.”
Grayscale Transfers Almost 12,000 BTC To Coinbase, Bitcoin Price Reacts
In a significant development that could potentially impact the Bitcoin price, Arkham Intelligence data reveals that Grayscale, the manager and owner of the Grayscale Bitcoin Trust (GBTC), has been sending a significant amount of Bitcoin to Coinbase since the launch of Bitcoin spot exchange-traded funds (ETFs) on January 12.
Grayscale Bitcoin Trust Initiates Substantial BTC Outflow
According to the data, four days ago, Grayscale initiated the first batch of BTC outflows from their holdings to the US-based exchange in four separate batches, totaling 4,000 BTC, which amounted to approximately $183 million. However, the asset manager resumed outflows from the Trust to the exchange on Tuesday.
In a recent update, approximately three hours ago, the asset manager sent an additional 11,700 BTC to Coinbase, amounting to $491.4 million. This additional selling pressure could push the Bitcoin price to test lower support levels.
Furthermore, Bloomberg reports that investors have withdrawn over half a billion dollars from the Grayscale Bitcoin Trust during the initial days of trading as an ETF.
According to Bloomberg’s data, outflows from the Grayscale Bitcoin Trust reached approximately $579 million, while the other nine spot Bitcoin ETFs witnessed inflows totaling nearly $819 million.
Investors Shift Capital To ‘Lower-Cost’ Spot Bitcoin ETFs
James Seyffart, an ETF analyst at Bloomberg Intelligence, noted that investors may be profit-taking following the ETF conversion. The flow data provides valuable insights into the ETF’s performance following SEC approval.
Although over $2.3 billion of GBTC shares were traded on its first day, the outflows indicate that a portion of that volume was due to selling. Seyffart anticipates that a significant amount of capital will enter other Bitcoin exposures.
The outflows from Grayscale’s ETF were somewhat expected. Bloomberg Intelligence had previously projected that the fund would experience outflows of over $1 billion in the coming weeks.
Some of this outflow can be attributed to investors shifting towards more cost-effective spot Bitcoin ETFs. With an expense ratio of 1.5%, GBTC is the most expensive US ETF directly investing in Bitcoin. In contrast, the VanEck Bitcoin Trust, the second-most expensive fund, charges 0.25%.
On the other hand, other spot Bitcoin ETFs have witnessed net inflows. BlackRock’s IBIT attracted nearly $500 million in the first two days of trading, while Fidelity’s FBTC received approximately $421 million.
According to Bloomberg, these inflows suggest strong demand for Bitcoin exposure in physically backed ETFs, even beyond potential seed funding from the fund issuers.
Bitcoin Price Finds Support At $42,000
Currently, the Bitcoin price remains unaffected by the news of Grayscale’s transfers to Coinbase. The leading cryptocurrency is trading at $43,100, showing a slight increase of 0.8% over the past 24 hours.
However, since the commencement of ETF trading, it is important to note that the Bitcoin price has experienced a significant retracement, declining by 8%. This decline can be attributed to profit-taking and selling pressure, with Grayscale’s involvement being noteworthy.
In the event of a further drop in the Bitcoin price, a significant support level has been established at $42,000. If this level is breached, the next key level for Bitcoin bulls to watch is $41,350, followed by a potential dip below $40,000.
The market is eagerly observing whether Grayscale and its BTC selloff will continue and how this will impact the Bitcoin price leading up to the scheduled halving event in April, which many consider to be the main catalyst for the year.
Featured image from Shutterstock, chart from TradingView.com
Grayscale Moves Nearly $1 Billion Worth Of Bitcoin In Past Month – Report
According to the latest report, asset management firm Grayscale has been transferring large amounts of Bitcoin to various wallet addresses over the past month. This data revelation comes days after the asset manager’s application to convert its Bitcoin trust to a spot exchange-traded fund (ETF) was approved by the United States Securities and Exchange Commission (SEC).
It is believed that the Grayscale Bitcoin Trust is one of the largest Bitcoin entities in the world. In September 2023, crypto analytics platform Arkham Intelligence discovered the asset manager’s multi-billion dollar BTC holdings across more than 1,750 wallet addresses.
How Much Did Grayscale Send To Coinbase?
CryptoQuant’s founder Ki Young Ju revealed – via a post on the X platform – that Grayscale has moved about 21,400 BTC to different wallet addresses in the last 30 days. The CEO also highlighted that some of the funds were sent to Coinbase, the largest centralized exchange in the United States.
Grayscale sent 21.4k $BTC to multiple addresses, including Coinbase, in the last 30 days. pic.twitter.com/7WK9qV8wa3
— Ki Young Ju (@ki_young_ju) January 13, 2024
Specifically, the recent conversion of the Grayscale Bitcoin Trust to a spot BTC ETF has put some spotlight on the firm’s funds movement in recent days. This is because the shares of GBTC are now redeemable for Bitcoin following the ETF approval on January 10.
However, Arkham Intelligence data on Friday, January 12, a day after the spot Bitcoin ETFs began trading in the US, revealed that Grayscale’s Bitcoin trust sent 894 BTC (about $41 million) to Coinbase in a single transaction. This amount sent to the exchange represents about 0.15% of GBTC’s total holdings.
Arkham’s data shows that an additional $119 million in BTC was sent to other addresses on January 12. Interestingly, these funds outflows from Grayscale Bitcoin Trust are believed to have caused the sudden downturn in the price of BTC on Friday.
Popular crypto trader Ran Neuner agreed with this belief, saying that the Bitcoin price is “dumping” as investors are selling their GBTC shares. Neuner said in his post on X:
GBTC held $25bn+ worth of Bitcoin that has been locked up for years with no option to be sold. 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.
Bitcoin Price is dumping as people are dumping their GBTC shares.
GBTC held $25bn+ worth of Bitcoin that has been locked up for years with no option to be sold. As soon as the redemption option opened, for the first time people are starting to exit – as they exit the Bitcoin… pic.twitter.com/EqHgpHyVdd
— Ran Neuner (@cryptomanran) January 12, 2024
Bitcoin Price Overview
As of this writing, the price of Bitcoin stands at $42,805, reflecting a 7% decline in the past 24 hours. The premier cryptocurrency has reversed most of its gains in the past week after initially falling to below $42,000 on Friday.
According to CoinGecko data, Bitcoin’s price is down by about 2.5% in the last seven days. Nevertheless, BTC maintains its position as the largest cryptocurrency in the sector, with a market cap of $838 billion.
