As the crypto community awaits the U.S. Securities and Exchange Commission’s decision on a spot Bitcoin ETF, a significant purchase of Wrapped Bitcoin (WBTC) by a wallet suspected to belong to VC firm Bitscale Capital has been identified. The wallet acquired $7.94 million worth of WBTC, indirectly investing in Bitcoin.
Chain data provider Spot On Chain reported that a wallet, believed to be associated with Bitscale Capital, bought 174 WBTC from Binance at an average price of $45,655 per token, totaling the multimillion-dollar investment.
According to on-chain data, the wallet’s second-largest holding is WBTC, with Lido DAO (LDO) being the largest at a value of $14.98 million, comprising 3.97 million LDO tokens.
The fundamental difference between Wrapped Bitcoin and Bitcoin lies in their respective blockchains and use cases. Bitcoin operates on its native blockchain, while WBTC is a token on the Ethereum blockchain, representing Bitcoin’s value within the Ethereum network, allowing interaction with Ethereum-based smart contracts.
While Bitcoin is typically used as a store of value and medium of transfer, WBTC is designed for use within the Ethereum ecosystem, functioning as a token for Decentralized Finance (DeFi) applications, smart contracts, and other Ethereum-based projects. WBTC enhances Bitcoin’s liquidity and availability within the Ethereum ecosystem.