Grayscale, a major player in cryptocurrency asset management and the leading issuer of a Bitcoin spot ETF, recently closed the sale of 100,000 BTC. The move intensified selling pressure on BTC, sending it to a three-month low of $38,240.
On sale in grayscale finish
Grayscale Investments has seen a significant decline in its spot Bitcoin ETF holdings. Approximately 100,000 BTC sold, amounting to $3.98 billion. This resulted in a 22% decrease in the company’s assets from 619,220 BTC to approximately 519,220 BTC.
Since the approval of the spot Bitcoin ETF, it has continued to trade despite a significant market downturn due to massive reserve drawdowns from GBTC sales. Bitcoin, as expected, retreated to the $38,500 support level.
Grayscale’s decline in Bitcoin holdings is about 60% of what nine new Bitcoin trading companies hold. Now the focus is on how many assets other companies have.
Is Bitcoin on the road to recovery?
Some experts offer an alternative view that the Bitcoin price could recover once Grayscale’s sale of 100,000 BTC is finalized. Despite Grayscale’s sale, 108,117 BTC flowed into other ETFs except Grayscale, showing that net inflows are continuing even after the sale of GBTC.
With 39,925 BTC, BlackRock’s iShares spot Bitcoin ETF has the second-largest BTC holdings after Grayscale, and is likely to ease selling pressure from the former’s sell-off.
Meanwhile, institutions are likely to increase their interest in approving an ETF for BTC after the SEC, and given the upcoming halving event that will cut miner sales in half, a lack of ETF-backed supply could push prices higher through 2025.
The current Bitcoin price is $39,981, down 0.6% over the past 24 hours and down 7% over the past 7 days.