Grayscale moved $1.3b Bitcoin to Coinbase since ETF approval

Following the approval of spot Bitcoin ETFs, Grayscale has transferred some 31,638 BTC within its dedicated Coinbase accounts.

According to Arkham Intelligence, the GBTC issuer moved a total of $1.3 billion in Bitcoin (BTC) since the U.S. Securities and Exchange Commission (SEC) approved 11 spot BTC exchange-traded funds (ETFs) on Jan. 10.

The data available revealed transactions over three days, including Jan. 12, Jan. 16, and Jan 17. These deposits into Coinbase Prime wallets from Coinbase custody accounts all happened during the opening trading hours of the U.S. stock market.

The first transaction shows 4,000 BTC worth $183 million moved by Grayscale. Following that, Grayscale transferred around 9,000 Bitcoins valued at $385 million. Over 18,000 BTC with a $798 million market value was moved on the third day, accounting for the largest Grayscale Coinbase deposit since spot BTC ETFs were approved. 

Simultaneously, Grayscale has experienced almost $1.2 billion in outflows from its converted BTC ETF, as similar funds saw billions in trading volume over the first few days. The most likely reason for Grayscale outflows may be its high 1.5% ETF fee, as noted by Dylan LeClair, lead analyst at UTXO Management.

Spot BTC ETFs have outclassed other ETFs launched in the last 12 months. As crypto.news reported, funds from issuers such as BlackRock, Bitwise, and VanEck did triple the trading volume boasted by 500 ETFs released in 2023.

In other news, the United States Government Accountability Office recommended pathways to improve internal control after a false spot BTC ETF approval message. The SEC promptly deleted the untrue announcement and said an investigation with the FBI was ongoing. 

U.S. senators have also called for explanations as to the source of the comprising, scrutinizing the SEC the event.