In what could potentially be a setup for bear trap amid hopes of an early approval of the spot Bitcoin ETF, BTC whales have transferred large holdings to crypto exchange Coinbase. This comes after Grayscale, which is expected to be among the first ETF seekers to get the nod from the U.S. Securities and Exchange Commission (SEC), amended its ETF filing.
Know More: Grayscale Makes Amended Bitcoin ETF Filing After Silbert’s Exit
BTC Dumping Ahead?
On Tuesday, December 26, 2023, Whale Alert noted on X platform that the Bitcoin whales transferred a total of nearly 12,000 coins over a few transactions in a span of few hours. Whale Alert notified that 3,110 BTC, 3,112 BTC, 4,470 BTC and 500 BTC were transferred from unknown wallet to Coinbase.
Although this kind of activity is generally associated with bearish sentiment and investors willing to be risk averse in volatile times, it could also be a bear trap to facilitate aggressive buying at low price. This could be supported by the potential approval of Bitcoin ETF as early as Friday, 29 December 2023, crypto enthusiast Chad Steingraber said.
What Next For BTC Price & Bitcoin ETF
Although Grayscale’s amendment to go with cash creates redemption model is a move in the direction of potential early approval, the US SEC may likely take time until the January 10, 2024 deadline to announce all the approvals at once, to avoid giving a single company or a batch of few the first mover advantage. On the other side, approvals in batches could be associated with a single date from which the ETF issuers could launch the product.
Earlier, CoinGape reported that the SEC gave a notice on making Friday, December 29, 2023, as the final deadline for making amendments to the spot ETF filings. Hence, it remains to be seen how the Bitcoin (BTC) Price reacts following the filings submitted until the Friday deadline.
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