Bitcoin Whales Purchased $388 Million of BTC Prior to Grayscale’s Legal Victory

5:11 pm
August 30, 2023

Summary: Bitcoin whales, large holders of the cryptocurrency, took advantage of recent price dips and anticipated a positive outcome in the Grayscale vs. US Securities and Exchange Commission (SEC) lawsuit by buying over $388 million worth of BTC. Following Grayscale’s legal victory, bitcoin reached a high of $28,000. Market intelligence platform Santiment highlighted this activity, with whales and sharks being “handsomely rewarded” with a 6% price jump.

Bitcoin Whales and Sharks Acquire $388 Million in BTC

Bitcoin’s price has slightly retreated from its peak, currently hovering around $27,370. Interestingly, Santiment, a market intelligence platform, revealed that large BTC holders purchased more than $388 million of bitcoin just before news broke of Grayscale’s triumph against the SEC. As a result, these whales and sharks were rewarded with a 6% price increase. Santiment suggests that these investors may have had an insider understanding of the lawsuit’s outcome, as they accumulated BTC in anticipation of a positive resolution.

Santiment tweeted, “Whales & sharks may have known a thing or two about the outcome of the #Grayscale and #SEC lawsuit, with 10-10K $BTC wallets accumulating a collective $388.3M in $BTC the day leading up to the news. They were handsomely rewarded with a +6% price jump.”

Earlier, Santiment also observed a significant increase in the exchange supply of bitcoin just before Grayscale’s victory over the SEC. This suggests that some parties had advance knowledge of the impending boost in the cryptocurrency market capitalization resulting from the court’s decision.

Increased Chances of Bitcoin ETF Approval

A recent ruling by the DC Circuit court vacated the SEC’s order denying Grayscale’s proposal to convert its GBTC to a Bitcoin Exchange Traded Fund (ETF). The court reviewed Grayscale’s petition and criticized the SEC for its inconsistent treatment of Bitcoin futures and spot ETFs. This decision has raised the prospects of the first spot Bitcoin ETF being approved in the US market, including an application by asset management giant BlackRock.

Frequently Asked Questions (FAQ)

What is Grayscale?

Grayscale is a digital asset investment firm that offers cryptocurrency investment products, including the Grayscale Bitcoin Trust (GBTC), which allows investors to gain exposure to bitcoin without directly owning it. Grayscale’s proposal to convert GBTC into a Bitcoin ETF was denied by the SEC.

What is the SEC?

The US Securities and Exchange Commission (SEC) is a regulatory agency responsible for protecting investors and maintaining fair and efficient markets. The SEC oversees and enforces securities laws in the United States.

What is a Bitcoin whale?

A Bitcoin whale refers to an individual or entity that holds a significant amount of bitcoin. These large holders have the potential to influence the cryptocurrency market due to their substantial holdings.

What is Santiment?

Santiment is a market intelligence platform that provides insights and analytics for cryptocurrencies. It offers data-driven analysis, sentiment analysis, and on-chain metrics to help traders and investors make informed decisions.

What is a Bitcoin ETF?

A Bitcoin Exchange Traded Fund (ETF) is a financial product that allows investors to gain exposure to bitcoin through traditional investment vehicles, such as a stock. It trades on a regulated exchange and tracks the price of bitcoin. ETFs provide a way for investors to invest in bitcoin without directly owning it.

What is BlackRock?

BlackRock is the world’s largest asset management firm, managing trillions of dollars in assets. The company offers a wide range of investment products and services to institutional and individual investors.

What does the court’s ruling mean for Bitcoin ETF approval?

The court’s decision to vacate the SEC’s order denying Grayscale’s proposal for a Bitcoin ETF indicates a potential shift in the regulator’s stance. It suggests that the chances of the US market getting its first spot Bitcoin ETF have increased. Other companies, like BlackRock, may also have a higher likelihood of approval for their Bitcoin ETF applications.

Sources: CoinJournal, Santiment Twitter


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