Grayscale, the entity behind the Grayscale Bitcoin Trust (GBTC), has executed another significant move by transferring an additional 9,000 bitcoins to an exchange on Tuesday. This strategic move aligns with the ongoing trend of net selling of the GBTC product, which recently underwent a transformation into a spot exchange-traded fund (ETF).
As per insights from Arkham Intelligence, the 9,000 bitcoins were transferred in batches of 1,000 shortly after 14:30 UTC, coinciding with the opening of the U.S. stock market after the three-day weekend.
The recent approval of a spot ETF by U.S. regulators has prompted investors to divest from Grayscale’s GBTC for various reasons, including the removal of the discount to net asset value and the allure of lower fees offered by competing ETFs.
In response to these net outflows, Grayscale liquidated 2,000 bitcoins last week. This figure has now escalated to 11,000, causing GBTC’s holdings to dip below 610,000 BTC.
The market reacted swiftly to the news, witnessing a sudden 2% drop in the price of Bitcoin [BTC] to below $42,100. However, as of the latest update, the price has rebounded to $43,100.
