SEC Greenlights 11 Bitcoin ETFs Amid Market Shifts

The U.S. Securities and Exchange Commission (SEC) has recently given the green light to 11 Spot Bitcoin Exchange-Traded Funds (ETFs). SEC Chairman Gary Gensler attributed the approvals to a prior legal success by Grayscale. Post-victory, Grayscale distributed Bitcoin to various addresses, including crypto exchanges.

Upon its debut, the Spot Bitcoin ETF made a substantial impact, boasting a total trading volume of $4.6 billion. However, experts deemed this insufficient, citing a $95 million outflow from the Grayscale Bitcoin Trust (GBTC) due to lower-than-expected Bitcoin inflows. The new ETFs reported a total net cash flow of $625.8 million on the debut day.

According to BitMEX Research, GBTC witnessed outflows of $484 million on the second day post-Spot Bitcoin ETF listing, reaching a total of $579 million over two days. CryptoQuant CEO Ki Young Ju highlighted Grayscale’s movement of over 21,400 BTC, valued at more than $900 million, within 30 days.

Grayscale’s Bitcoin transfers to various addresses, including Coinbase, indicate potential selling of holdings before the ETF approval. An analysis of Grayscale’s wallet outflows revealed shifts in the balance of Grayscale’s BTC reserve wallet.

Specifically, Grayscale sent 4,000 BTC, worth $183 million, to Coinbase Prime’s deposit address, suggesting investors might be transferring assets to other Spot Bitcoin ETFs due to a high 1.5% fee. Meanwhile, Bitcoin’s price continued to decline, experiencing a 24-hour drop of over 6%, finding buyers around $42,680.

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