Coinbase receives $1.3 billion worth of Bitcoin from Grayscale following ETF endorsement
Grayscale, the issuer of the GBTC, has transferred approximately 31,638 BTC to its dedicated Coinbase accounts following the approval of spot Bitcoin ETFs. This move comes after the U.S. Securities and Exchange Commission (SEC) authorized 11 spot BTC exchange-traded funds on January 10. According to data provided by Arkham Intelligence, the transfers occurred over a span of three days, specifically on January 12, 16, and 17. These transactions involved deposits into Coinbase Prime wallets from Coinbase custody accounts, and they all took place during the opening trading hours of the U.S. stock market.
The first transfer consisted of 4,000 BTC worth $183 million, while the subsequent transfer saw Grayscale move around 9,000 Bitcoins valued at $385 million. The largest deposit occurred on the third day, with Grayscale transferring over 18,000 BTC, equivalent to a market value of $798 million. This marked the largest Grayscale Coinbase deposit since spot BTC ETFs were approved.
Concurrently, Grayscale has experienced outflows of nearly $1.2 billion from its converted BTC ETF. Similar funds have also witnessed billions in trading volume during the first few days. Dylan LeClair, the lead analyst at UTXO Management, suggests that the high 1.5% ETF fee imposed by Grayscale may be the primary reason for the outflows.
The spot BTC ETFs have surpassed the performance of other ETFs launched in the past year. Reports indicate that these funds have generated triple the trading volume compared to 500 ETFs released in 2023, including those by BlackRock, Bitwise, and VanEck.
In unrelated news, the United States Government Accountability Office has recommended measures to enhance internal control following a false announcement of a spot BTC ETF approval. The SEC promptly retracted the false statement and announced an ongoing investigation in collaboration with the FBI. U.S. senators have also demanded an explanation regarding the source of the compromise, thus scrutinizing the SEC’s handling of the incident.
