Grayscale's Bitcoin Trust (GBTC) moved more than 19,000 Bitcoin (BTC) from its publicly known wallet on Wednesday morning. Since launching spot Bitcoin ETFs on Jan. 11, Grayscale has now transferred nearly 113,000 bitcoins from its wallet, according to Arkham, the vast majority of which went to Coinbase Prime in preparation for the sale.
The Grayscale website showed on Wednesday morning that GBTC was holding about 537,000 Bitcoin, down about 100,000 BTC since January 11th.
As Arkham noted, one caveat to the observed movement of Bitcoin from the Grayscale wallet is that not all of it may be related to redemption. “Outflows are typically split between Coinbase Prime and new GBTC custody addresses,” Arkham said. “This means that not all BTC moved will be redeemed. The outflows appear to be settlements of trading activity for the previous day(s).”
GBTC experienced this massive outflow for many reasons, but primarily because Grayscale reduced its management fee by just 50 basis points to 1.50% after converting to a spot ETF. That's more than 100 basis points more than the other nine competing Bitcoin ETFs. Assets under management (AUM) at Grayscale have fallen by more than $1 billion each day this week.
The rapid pace of GBTC Bitcoin sales is one of the factors putting pressure on the price of Bitcoin, which fell below $40,000 to its lowest level in almost two months earlier this week. At press time, Bitcoin was trading at $39,800, remaining virtually unchanged over the past 24 hours.
Bitcoin bulls' hopes were temporarily boosted earlier this week when CoinDesk reported on Monday that FTX had sold its 22 million GBTC stake. With this uneconomic whale seller out of the way, bulls were hoping that there could be a slowdown in GBTC exits. However, so far this has not happened, as evidenced by this morning's move of 19,000 Bitcoin for exchange.
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