tl;dr
The industry's largest digital asset manager, Grayscale, has been selling Bitcoin following the approval of spot BTC exchange-traded funds by US regulators. This has resulted in over $3.3 billion in outflows and large amounts of Bitcoin being deposited into Coinbase. The reason for the exodus is inv...
The industry's largest digital asset manager, Grayscale, has been selling Bitcoin following the approval of spot BTC exchange-traded funds by US regulators. This has resulted in over $3.3 billion in outflows and large amounts of Bitcoin being deposited into Coinbase. The reason for the exodus is investors rebalancing their portfolios and entering funds with lower fees for better returns. While Grayscale has offloaded a significant amount of Bitcoin, it has been scooped up by other ETFs, and there is potential for a larger player to acquire the firm. Despite the ongoing selling, a lower Bitcoin price will benefit other ETF issuers and investors.
Crypto markets have been rattled by days of Bitcoin offloading by the industry’s largest digital asset manager, Grayscale. Bitcoin continues to fall below $40,000, but much of the Grayscale outflow has been scooped up by other fund managers, so why are traders selling their coins? Since it was permitted to convert its GBTC fund into a spot Bitcoin ETF on January 11, the firm has seen more than $3.3 billion in outflows and has been depositing large amounts of Bitcoin into Coinbase in preparation for further sales. The reason for the exodus is largely due to investors rebalancing their portfolios and entering funds with lower fees for better returns. BlackRock and Fidelity have been the biggest buyers of Bitcoin, with 39,925 and 34,127 BTC held, respectively, as of January 22.
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