The U.S. Securities and Exchange Commission (SEC) recently approved 11 Spot Bitcoin Exchange-Traded Funds (ETFs). SEC Chairman Gary Gensler cited a previous court victory by Grayscale as the primary reason behind the approvals. Following the victory, Grayscale distributed Bitcoin to various addresses, including crypto exchanges.
On its debut, the Spot Bitcoin ETF generated a significant impact, achieving a total trading volume of $4.6 billion. However, experts deemed this insufficient, noting a $95 million outflow from the Grayscale Bitcoin Trust (GBTC) due to lower-than-expected Bitcoin inflows. The total net cash flow for the new ETFs on that day was reported to be $625.8 million.
According to BitMEX Research, GBTC experienced outflows of $484 million on the second day after the Spot Bitcoin ETF listing, with total outflows reaching $579 million over two days. CryptoQuant CEO Ki Young Ju highlighted that Grayscale moved over 21,400 BTC, valued at more than $900 million, within a 30-day period.
Grayscale transferred Bitcoin to multiple addresses, including Coinbase, suggesting that owners might have sold their holdings before the ETF approval. An analysis of Grayscale’s wallet outflows revealed changes in the balance of Grayscale’s BTC reserve wallet.
Grayscale sent 4,000 BTC, worth $183 million, to Coinbase Prime’s deposit address, with investors possibly moving their assets to other Spot Bitcoin ETFs due to the high fee of 1.5%. Meanwhile, Bitcoin’s price continued to fall, with a 24-hour drop of over 6%, finding buyers around $42,680.