Bitcoin Whale Shifts $6 Billion as Grayscale Foresees Ether ETF Approval Amid Low Coinbase Supply
Summary:
A Bitcoin 'whale' shifted $6 billion in assets for the first time since 2019. Asset manager Grayscale remains hopeful about the approval of Ethere (ETH) spot exchange-traded funds despite regulator indifference. The supply of Bitcoin on Coinbase has dropped to a nine-year low, indicating continued accumulation of the digital currency. Despite significant outflows from the Grayscale Bitcoin Trust, other spot ETFs show robust demand. New highs are being reached in digital currency trading and accumulation, with Bitcoin hitting more than $70,000.
For the first instance since 2019, a Bitcoin 'whale' has transferred over $6 billion in assets. Grayscale, the renowned financial asset management company, remains sanguine about getting the green light on Ether (ETH) spot exchange-traded funds in May, despite apparent indifference from the regulator. In the meantime, Bitcoin supply on Coinbase significantly dipped to a rock-bottom not seen in nearly a decade, indicating increasing acquisition of the leading digital currency.
Over $6 billion in BTC was shifted by the fifth-largest Bitcoin 'whale', known as “37X”, transferring the vast sum to three new addresses. The address transferred almost its entire balance of 94,500 Bitcoin (a total value of $6.05 billion) on March 23rd, leaving a negligible 1.4 BTC in the original account, as reported by Arkham Intelligence on March 25. Despite Bitcoin price scaling historical heights ahead of the halving for the first time ever, the impending decrease in supply issuance is still not fully factored into the prices, as per inputs from the co-founder of decentralized exchange D8X and a previous high-ranking officer at UBS.
Regardless of recent speculations surrounding the U.S. securities regulator's apparent disinterest in interacting with applicants, Grayscale maintains an optimistic outlook for Ether (ETH) spot exchange-traded funds gaining approval by May. Grayscale's Chief Legal Officer, Craig Salm, explained in a March 25 dispatch that perceived inertia from regulators shouldn't necessarily predict one outcome or another.
Salm elaborated further explaining that salient issues related to spot Ether ETFs, including asset protection, loss prevention, and custody, as well as specifics of creation and redemption procedures, were ascertained in the time leading up to the approval of spot Bitcoin ETFs. He added, the case for the approval of Ether ETFs is as compelling as it was for Bitcoin ETFs.
On March 25, Bitcoin's price rose above $70,000 as Coinbase's Bitcoin reserves fell to the lowest in almost a decade, signalling sustained accumulation. Bitcoin reserves on all exchanges approached a three-year low at 1.92 million BTC on March 25, indicating that popularity for BTC is climbing following the validation of several spot exchange-traded funds earlier in the year.
Despite significant withdrawals from the Grayscale Bitcoin Trust, there is a robust demand for other spot ETFs. BlackRock's ETF product, for instance, could supersede Grayscale in just a matter of weeks due to its hefty accumulation. However, this article does not serve to provide investment advice or recommendations. Every investment or trading move harbors risks, and it's necessary for readers to conduct thorough research before deciding on any course of action.
This document also includes reports by Geraint Price, Sam Bourgi, and Felix Ng.
Published At
3/26/2024 4:01:00 PM
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