Grayscale Successfully Sells $2.14 Billion Worth of BTC Following ETF Authorization
Grayscale Investments has offloaded more than $2.14 billion in Bitcoin (BTC) after the Securities and Exchange Commission (SEC) gave the green light to spot Bitcoin exchange-traded funds (ETFs). According to crypto analytics platform Lookonchain, Grayscale’s Bitcoin holdings have dropped by approximately 52,227 BTC, equivalent to $2.14 billion, following the SEC’s approval earlier this month. Grayscale currently holds 566,973 BTC, valued at $23.21 billion. Other major players in the cryptocurrency market, such as iShares (BlackRock), Fidelity, and Bitwise, also have significant Bitcoin holdings. Grayscale’s decision to sell off its Bitcoin assets is seen as a strategic move, driven by the growing institutional interest in the cryptocurrency sector, following the approval of spot Bitcoin ETFs. The move also marks a significant change in Grayscale’s investment strategy, as the company was authorized to convert its $28 billion Bitcoin trust into the GBTC spot ETF in November last year. Analysts speculate that the high management fee and the change in pricing structure of Grayscale’s Bitcoin shares are factors contributing to investors’ withdrawal from GBTC. With the discount on GBTC shares nearly eliminated, investors are seeking more profitable alternatives. Grayscale’s sell-off may also exert further pressure on Bitcoin prices in the coming weeks. Despite these developments, the broader Bitcoin market is currently experiencing a lack of momentum, with the price of Bitcoin standing at $40,735, reflecting a decline of 2.42% over the last 24 hours and 6.8% over the past month. Grayscale’s substantial sell-off, combined with the ongoing market trends, raises questions about the future valuation of Bitcoin and how major institutional players will position themselves in the evolving cryptocurrency landscape.
