Grayscale, the owner of the Grayscale Bitcoin Trust (GBTC), has sent an additional 9,000 bitcoin to an exchange, signaling ongoing net selling of the product following its conversion to a spot exchange-traded fund (ETF). The move comes after U.S. regulatory approval for a spot ETF last week, which has resulted in net outflows from GBTC as investors sell for various reasons.
According to data from Arkham Intelligence, the 9,000 bitcoin were moved in batches of 1,000 just after 14:30 UTC, coinciding with the opening of the U.S. stock market following the three-day weekend. This indicates a strategic decision by Grayscale to offload a significant amount of bitcoin.
The net outflows from GBTC have been driven by several factors. One reason is the elimination of the discount to net asset value, which has made other competing ETFs more attractive to investors. Additionally, lower fees offered by these competing ETFs have also contributed to the outflows from GBTC.
Last week, Grayscale sold 2,000 bitcoin, and this number has now risen to 11,000. As a result, GBTC’s holdings have dropped below 610,000 BTC. This significant reduction in bitcoin holdings by Grayscale is noteworthy and suggests a shift in their investment strategy.
The news of Grayscale’s additional bitcoin sale had a temporary impact on the price of Bitcoin (BTC), causing a sudden drop of nearly 2% to below $42,100. However, the price quickly recovered to $43,100 as of press time. This indicates that the market has absorbed the news and remains resilient.
The move by Grayscale to sell a substantial amount of bitcoin could have implications for the overall market sentiment. As one of the largest institutional holders of bitcoin, Grayscale’s actions are closely watched by investors and can influence market dynamics.
It remains to be seen how the market will react to Grayscale’s ongoing selling of bitcoin and whether it will have a long-term impact on the price and sentiment surrounding the cryptocurrency. Investors will be closely monitoring any further developments from Grayscale and the potential implications for the broader crypto market.
In conclusion, Grayscale’s decision to send an additional 9,000 bitcoin to an exchange for sale indicates ongoing net selling of GBTC following its conversion to an ETF. The outflows from GBTC have been driven by factors such as the elimination of the discount to net asset value and lower fees at competing ETFs. The market initially reacted to the news, causing a temporary drop in the price of Bitcoin, but it quickly recovered. Grayscale’s actions will continue to be closely watched by investors as they could have implications for the broader crypto market.