On Friday, the world’s major cryptocurrency Bitcoin staged an impressive surge, adding 5.52% and increasing above the $42,000 price level. Failing to hold there, Bitcoin declined back to $41,429 overnight, but then a rise followed, taking BTC to the $41,700 zone, where it is changing hands at the time of this writing.
So far, since Tuesday, Feb. 23, Bitcoin has printed a substantial increase of 7.86%, going up from the $38,705 price level.
Prior to that, Bitcoin traders and investors had been selling part of their Bitcoin holdings after the American Securities and Exchange Commission gave the green light to spot Bitcoin ETF issuers in the middle of January, letting them trade their new highly-anticipated products, exchange traded funds that track the spot price of Bitcoin.
On the news of the approval then, Bitcoin soared above the $42,000 level but then crashed all of a sudden as traders began to lock in their profits, and some were selling in order to buy the new Bitcoin ETFs issued by BlackRock (NYSE:BLK), Fidelity, VanEck, Ark Invest and other Wall Street hedge funds, 11 in total.
These companies began acquiring large amounts of Bitcoin for their ETFs before the approval and continue to do so now. The only exception here is Grayscale Bitcoin Trust spot ETF; now that the mandatory term during which customers’ BTC was locked there is over, Grayscale clients have begun to withdraw their Bitcoin from the GBTC Trust en masse, along with Grayscale itself selling large Bitcoin chunks recently.
Over the past 24 hours, close to 1 billion U.S. dollars worth of Bitcoin has been moved to Coinbase Institutional by several anonymous whales in four massive transactions.
A similar amount of Bitcoin was withdrawn from the aforementioned platform in 13 transfers, which carried approximately 1,400 BTC each. Bitcoin whales’ activity surged as BTC started going upward again.