According to Arkham data, after 10 PM on January 23rd, 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 BTC has been transferred to Coinbase Prime.
Following the news of the BTC outflow, BTC 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 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 dealt a significant blow to the Bitcoin price.
Recalling the perspective of Nathan Yu, a researcher, in November 2023:
“In the early stages of the establishment of the spot ETF, new funds will indeed flow into Bitcoin. However, if the spot ETF allows for physical redemption, it will also provide a channel for Bitcoin whales to sell ETFs in the stock market and cash out. This will actually awaken dormant Bitcoin whales and make them exit through the ETF.
In other words, the establishment of the spot ETF will initially attract fund inflows but also cause whales to sell off.”
Coinbase
GBTC
Nathan Yu
Grayscale
Further Reading:
Nathan Yu’s Perspective: Is Bitcoin Spot ETF Equal to a Bull Market? Understanding the Blind Spots and Actual Impact of Bitcoin ETFs
Is Circle’s Abandonment of US Treasuries in Favor of Repo Agreements a Good Idea?