KEY POINTS
- The crypto community on X immediately reacted to the move, with one user saying it could be a sign of 'panic'
- A day earlier, Grayscale's GBTC saw massive outflows of $303 million
- Arkham predicted that Grayscale's BTC reserves may run dry in less than a hundred days
Grayscale was spotted moving over $400 million worth of Bitcoin to Coinbase at a time when the investment management firm is experiencing consistent outflows in its BTC reserves.
Blockchain community Satoshi Club first noted the transfer and revealed that Stamford-based Grayscale moved 6,200 BTC, worth some $442 million, to cryptocurrency exchange giant Coinbase on Tuesday.
JUST IN: #Grayscale has moved 6,200 $BTC worth $442M to Coinbase pic.twitter.com/tTADZ7DpbH
— Satoshi Club (@esatoshiclub) April 9, 2024
The crypto community on X (formerly Twitter) reacted to the move, with some saying the transfer is "certainly turning heads in the crypto world." Others wondered what the investment firm is "cooking," while one user said it could be a sign of "panic."
Grayscale shifting over $442 million worth of Bitcoin to Coinbase is certainly turning heads in the crypto world.
— Joslad04 $DUEL (@Joslad04) April 9, 2024
What are they cooking 🤔
— Bigbossveee 🧡 (@Bigbossveee) April 9, 2024
PANIC!!!!!!!!!!!!!!!!!!
— Smack Digital (@SmackDigi) April 9, 2024
The movement comes a day after Bitcoin-focused firm Swan revealed that Grayscale's Bitcoin Trust (GBTC) exchange-traded fund (ETF) experienced a significant outflow of $303.3 million Monday.
BREAKING‼️ - On Monday, #Bitcoin ETFs experienced NET OUTFLOWS totaling $223.8 million.
— Swan (@Swan) April 9, 2024
BlackRock: $21.3 million
Fidelity: $6.3 million
Bitwise: $40.3 million
Ark: $9.3 million
WisdomTree: $2.3 million
Grayscale: -$303.3 million pic.twitter.com/b1ihBL76m4
Prominent blockchain analysis firm Arkham Intelligence predicted late last month that Grayscale's spot Bitcoin ETF may only have "14 weeks until they run out for good" if the outflows keep coming. Arkham noted that the GBTC started 2024 with holdings of over 618,000 BTC but as of March 24, the ETF only had holdings of over 356,000 Bitcoins.
Grayscale started the year holding 618.28K BTC for their Bitcoin Trust GBTC.
— Arkham (@ArkhamIntel) March 23, 2024
They now hold only 356.44K BTC.
If they carry on like this, there’s only 14 weeks until they run out for good.
Follow Grayscale on Arkham:https://t.co/K7P3NmHxvf
At around the same time news of the massive GBTC outflows emerged, Bitcoin dropped below $63,000 – marking a stark contrast from when the digital asset skyrocketed to $73,000 to erase its previous all-time high records.
The latest transfer of Grayscale's millions worth in Bitcoin comes as the price of the world's largest cryptocurrency by market cap has fallen once more to $69,000. The digital coin hit $72,000 over the weekend but has since slumped.
This isn't the first time GBTC outflows made buzz within the crypto community. Late in January, crypto observers already noticed a Bitcoin exodus within the trust. For a period of seven trading days, an estimated $3.5 billion in GBTC outflows was recorded at the time.
Meanwhile, Grayscale has been waiting for the U.S. Securities and Exchange Commission's (SEC) decision regarding its application for a spot Ethereum (ETH) ETF. Last week, the regulator called for comments on Grayscale, Fidelity, and Bitwise's applications. Commentators have three weeks to submit their insights.
It is worth noting that industry analysts have been less optimistic about the SEC approving spot ETH ETFs, as the regulator has been pushing back its decision. There were also earlier reports that while the SEC approved spot Bitcoin ETFs in January amid increasing pressure from the emerging sector, it is a "hard no" on Ether ETFs – the reason being reported "internal resistance to the idea."
