Grayscale Moves Fresh $579M Bitcoin to Coinbase as Market Stabilizes

Grayscale Investments, a prominent cryptocurrency asset management firm, has recently initiated a significant move to double down on Bitcoin asset exodus. The company recently transferred $579 million worth of Bitcoin (BTC) to Coinbase, a leading cryptocurrency exchange. 

This move comes at a notable juncture, coinciding with a period of market stabilization.

Details of the Latest Bitcoin Movement

Blockchain analytics firm Lookonchain took to X to outline the volume of BTC units that Grayscale Investments has transferred to its custodian, Coinbase Custody since the United States Securities and Exchange Commission (SEC) approved its spot Bitcoin application, including that of ten other Exchange Traded-Fund (ETF) issuers.

Currently, Grayscale deposited $14,487 BTC worth approximately $579 million to Coinbase Prime and $4,750 BTC worth $189.8 million to an undisclosed wallet. So far, Grayscale has deposited a total of 93,700 Bitcoin valued at over $3.8 billion according to the current market price of the coin. The asset management firm now holds 519,399 Bitcoin, valued at over $20.84 billion.

Meanwhile, the decision to move such a substantial amount of Bitcoin to Coinbase can be viewed via multiple lenses. Firstly, it reflects Grayscale’s confidence in the stability and security of Coinbase as a trusted custodian for digital assets. Secondly, the timing of this move is noteworthy, seeing the crypto market is seeing intense volatility, with Bitcoin’s value witnessing fluctuations.

Grayscale’s decision to transfer Bitcoin during a phase of market stabilization suggests a calculated approach, possibly aimed at optimizing its portfolio or capitalizing on emerging opportunities as it has bled a significant capital from the GBTC product.

Recall that Grayscale transferred $623 million worth of Bitcoin to Coinbase just a few days ago. At the time the SEC approved the spot BTC ETF products, Grayscale had already transferred more than 21,400 BTC worth over $900 million in the last 30 days.

The Steady Grayscale Bitcoin Outflow

Earlier this week, reports revealed that Grayscale has seen a huge increase in its outflows. The net daily outflow from Grayscale’s GBTC has reached $640.50 million, while its overall net outflow now stands at an astounding $3.4 billion.

For the fifth day of trading, the total net outflow from all 11 spot bitcoin ETFs amounted to 131.6 million. Bloomberg analyst Eric Balchunas said Grayscale’s big outflow number is its highest outflow so far,  adding that while the other ETFs did their best to offset the outflows, they fell short. 

At the time of writing, Bitcoin is changing hands for $40,085.27 up by 2.86% in 24 hours.