Grayscale Sparks Fresh Selloff Scare With $623M Bitcoin Transfer to Coinbase

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

Grayscale Continues its Transfer Stint

So far, Grayscale has deposited a total of 63,991 Bitcoin valued at over $2.68 billion according to the current market price of the coin. The most recent deposit of 15,308 BTC to Coinbase Prime worth approximately $625.8 million was recorded earlier today. Notably, this transfer trend has been sustained since the new product was launched more than a week ago.

After leading the spot Bitcoin ETF market by trading volume on the first trading day, Grayscale began to transfer its Bitcoin. At first, many customers feared that the asset manager was dumping its BTC holding, a scare attributed to the slump in the price of Bitcoin. 

However, it seems that most of the BTC may have been going to Grayscale’s custodian for safekeeping. 

As of the time the SEC approved the spot Bitcoin ETF products, it was discovered that Grayscale had transferred more than 21,400 BTC worth over $900 million in the last 30 days. The deposit was reported to be made to addresses in different crypto exchanges including Coinbase. 

Around the same time, Grayscale transferred 4,000 BTC worth $183 million to a Coinbase Prime deposit address lending a diverse thesis to the fund allocations.

Grayscale’s Concerning Capital Outflows

Last week, another deposit from Grayscale was reported featuring a massive 9,000 Bitcoin unit worth $385,000,000. 

In this case, the transfers were made in nine transactions with 1000 BTC sent in each case. Notably, the transactions were initiated at the same time. According to Arkham Intelligence, Grayscale currently holds only about 549,116 Bitcoin worth $22.32 billion. 

In terms of the recorded net outflows for its GBTC, Grayscale has seen the transfer of over $2.2 billion including an outflow of almost $580 million on the fifth trading day for spot Bitcoin ETFs. Meanwhile, the asset manager has adopted a new marketing strategy to correct this impediment and from the huge inflows recorded on the sixth trading day, it seems the decision is paying off.