Did the Massive Coinbase Outflow of 14,000 Bitcoin Belong to Guggenheim Partners?

By Prashant Jha
February 2, 2021 Updated February 2, 2021
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Coinbase, one of the largest crypto exchanges based out of the US registered a massive outflow of bitcoin the day before yesterday amounting to 14,000 BTC and nearly worth half a billion-dollar to cold storage. The massive outflow for sure attracted a lot of attention especially at a time when the price of BTC seems stuck under $35,000 for nearly three weeks.

Many believe that the massive amount of Bitcoin belonged to Guggenheim Partners who recently filed with the SEC to BUY Bitcoin via Grayscale’s GBTC trust fund. In their filing, they mentioned that they intend to buy $500 million worth of bitcoin, the exact amount of Bitcoin transferred from Coinbase.

Also, most of the whale outflow from Coinbase are sent to OTC wallets that also adds to the story as the cold storage to which the BTC was sent could belong to Guggenheim Partners as the crypto exchange Coinbase also offers custodial service for OTC traders and institutional clients that include the largest crypto trust fund manager Grayscale.

Guggenheim Accused of Spreading FUD

Guggenheim filed for buying GBTC trust back in November when the price of bitcoin had just started to rise and was trading at $17,000, however, the CEO of the asset management firm Scott Minerd seemed a little bearish towards the top cryptocurrency when the price soared above $38k as he predicted the price would fall below $20k in the short term.

Many accused the Guggenheim group of spreading FUD to bring the prices down so that they could buy it at a cheaper price for their trust fund as the effective date of buying was set for January 31st.

While there is no official confirmation as of now but joining the dots, it seems most likely that the outflow belonged to the Guggenheim Partners and it seems they bought bitcoin at an entry price of $32.4k.

An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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