This market bloodbath has been exacerbated by massive selloffs from the Grayscale Bitcoin Trust (GBTC) shortly after the ETF approval. Interestingly, after the SEC’s ETF approval, Alameda, FTX’s sister firm, recently withdrew its case against Grayscale.
However, data suggests that FTX also sold off 22 million GBTC shares, compounding the bearish pressure on Bitcoin and the broader market. Besides the FTX sale, institutional investors have continued to dump their GBTC shares, resulting in more BTC selloffs.
Grayscale recently moved $1.3 billion to Coinbase, the custody service provider for GBTC. Amid an outflow of $2 billion from the ETF, a market analyst pointed out that the product’s 1.5% high fee and the absence of its massive discount have triggered the investor exodus.
Meanwhile, as the onslaught endures, CryptoQuant data confirms that exchange net flows recently pivoted to bullish grounds, with deposits on exchanges currently lower than the weekly average. This pattern entails that the selloff campaign might be slowing down.#BTC $BTC $ETH $BNB
