Cryptocurrency asset manager Grayscale recently made a large Bitcoin transfer to the popular exchange Coinbase. According to on-chain data analyst Arkham, at 22:09 UTC+8 on March 1st, Grayscale moved 3,196 BTC to a Coinbase Prime custody wallet.
At the time of transfer, the stash of Bitcoin was worth approximately $200 million based on market prices. This highlights Grayscale’s position as one of the largest institutional holders of Bitcoin globally.
The BTC were sent from one of Grayscale’s institutional wallets to a deposit address for Coinbase Prime, which is the exchange’s prime brokerage service for institutional investors. This likely signals that Bitcoin will be used for additional investment products or lending services offered to Grayscale’s clients.
Grayscale’s Bitcoin Trust has over 438,209 BTC under management, making it the biggest player in the cryptocurrency institutional investment sector. The recent transfer to Coinbase equates to around 0.5% of Grayscale’s total Bitcoin holdings.
While the end purpose for this sizable transfer is unknown, it underscores the growing institutional demand for products and services related to Bitcoin as an investable asset class. Crypto analysts will be closely watching to see if additional Grayscale BTC deposits show up on Coinbase custody wallets.