Grayscale Sends 588 Million Magnesium Bitcoins to Coinbase; BTC Falls Below 38K, ETH Breaks 2.2K
According to Arkham data, after 10 p.m. on January 23, Grayscale addresses initiated multiple transactions, transferring a total of 15,222 BTC (approximately $588.5 million) to ETF custodian Coinbase Prime. Since the approval of the Bitcoin spot ETF, a total of 79,213 bitcoins have been transferred to Coinbase Prime.
Following the news of the BTC outflow, the price briefly dropped to 38,555, while ETH fell to 2,168.
Bloomberg analyst Eric Balchunas did not comment on this but only mentioned that the outflow amount of GBTC reached a new high on the seventh trading day. Overall, the net inflow in the past seven days amounted to $1 billion.
However, despite the overall net inflow, it has greatly affected the price of Bitcoin.
In a previous analysis by researcher Nathan Yu in November 2023, he pointed out that the establishment of the spot ETF would indeed bring new funds into Bitcoin. However, if the spot ETF allows for physical redemption, it would also provide a channel for Bitcoin whales to sell ETFs and cash out from the stock market. This could potentially awaken dormant Bitcoin whales and lead to their exit from the ETF.
Coinbase, GBTC, Nathan Yu, Grayscale
Further reading:
Nathan Yu’s Perspective: Bitcoin Spot ETF = Bull Market? Understanding the Blind Spots and Actual Impact of Bitcoin ETF
Is it a good idea for Circle to abandon US Treasuries and switch to repurchase agreements (Repos)?
