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In a surprising move, Grayscale Investments, the company behind the renowned Grayscale Bitcoin Trust (GBTC), has reportedly sold off a substantial amount of Bitcoin (BTC), totaling $2.14 billion. This massive divestment comes in the aftermath of the recent approval granted by the United States Securities and Exchange Commission (SEC) for spot Bitcoin exchange-traded funds (ETFs).
According to Lookonchain, a prominent cryptocurrency analytics platform, Grayscale's Bitcoin holdings have diminished by approximately 52,227 BTC, equivalent to $2.14 billion, since the SEC greenlit spot Bitcoin ETFs earlier this month. Grayscale currently holds 566,973 BTC, valued at $23.21 billion. In comparison, iShares (BlackRock) boasts 33,431 BTC ($1.37 billion), Fidelity holds 24,857 BTC ($1.02 billion) and Bitwise holds 10,152 BTC ($415.6 million).
Strategic move?
This strategic move by Grayscale is noteworthy, given the recent wave of approvals granted by the SEC for various spot Bitcoin ETFs. Notable financial players securing approval include ARK Invest, BlackRock, VanEck, WisdomTree, Fidelity, Invesco, Franklin Templeton, Bitwise and Valkyrie. Additionally, Grayscale Investments received the green light to convert its $28 billion Bitcoin trust into the GBTC spot ETF, signifying a significant shift in the investment landscape.
The cryptocurrency community is abuzz with speculation regarding Grayscale's decision to offload a substantial portion of its Bitcoin holdings. Analysts suggest that the approval of spot Bitcoin ETFs may have prompted Grayscale to relocate its assets strategically, capitalizing on the increased institutional interest in the cryptocurrency market.
Meanwhile, the broader market trend for Bitcoin appears to lack momentum, as the current price stands at $40,955. This reflects a 1.73% decrease in the last 24 hours and a 5.90% decline over the past 30 days. The market dynamics, coupled with Grayscale's massive Bitcoin sell-off, raise questions about the potential impact on Bitcoin's overall valuation and the strategic positioning of major institutional players in the evolving crypto landscape.
Yuri Molchan
Vladislav Sopov
Dan Burgin
Alex Dovbnya