Cryptocurrency NewsGrayscale Shifts $183M in BTC to Coinbase

Grayscale Shifts $183M in BTC to Coinbase

The recent transfer of around 4,000 BTC by Grayscale Bitcoin Trust, estimated at $183 million, to Coinbase Prime’s deposit accounts has come to light through Arkham Intelligence’s latest insights. This move is of particular interest amidst Grayscale’s launch of a spot Bitcoin ETF, distinguished by its relatively steep fee of 1.5%. The shift in investor preference is becoming more apparent in the wake of the SEC sanctioning multiple spot Bitcoin ETFs.

In this evolving landscape, other ETFs managed by major players like BlackRock, VanEck, ARK 21Shares, and Bitwise are stepping up the competition with more appealing fee structures, varying from 0.2% up to 1.5%. Some of these ETFs are even offering temporary fee waivers to attract investors.

The Bitcoin market itself is experiencing significant dynamism. Post the SEC’s endorsement of several Bitcoin spot ETFs, Bitcoin’s value soared to nearly $49,000, only to subsequently plunge to about $41,300, which translates to a sharp 10.5% drop within a day. This price fluctuation can be ascribed to multiple factors, including the market’s reaction to the introduction of new ETFs and potential supply disturbances caused by substantial transactions like that of Grayscale.

Earlier, various analysts had pointed out the likelihood of substantial volatility in Bitcoin prices as the market adapts to these new investment mechanisms.

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