By: Eliza Bennet
Asset management firms Grayscale and BlackRock have both been making significant moves in the bitcoin market, according to reports. Over the past month, Grayscale has reportedly transferred large amounts of Bitcoin to numerous wallet addresses, following their application to convert their Bitcoin trust to a spot exchange-traded fund(ETF) which was recently approved by the United States Securities and Exchange Commission (SEC). As one of the largest Bitcoin entities, Grayscale's activity has drawn significant attention, particularly as it moved about 21,400 BTC to different addresses in the last 30 days.
On the other side, BlackRock, another major asset management firm, reportedly bought a staggering 11,500 Bitcoin during the recent market dip since the launching of its own spot Bitcoin ETF. This major purchase is particularly significant as it effectively represents about 13 days' worth of Bitcoin production being absorbed by a single player.
Interestingly, these sizable transactions from Grayscale and BlackRock's investment in Bitcoin have highlighted the potential supply crunch in Bitcoin market. The trend suggests a tightening of available Bitcoin supply and a growing institutional interest in Bitcoin. Nonetheless, the move by these asset managers contributed to the sudden downturn in the price of BTC and has caused speculation about the future pricing and supply of the cryptocurrency.
The fluctuation in Bitcoin price stands at $42,805, reflecting a 7% decline in the past 24 hours, while the first two trading sessions following the approval of new spot Bitcoin ETFs experienced significant inflows totaling $819 million.
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