Grayscale Ethereum Trust Withdraws $4.16M Worth of ETH from Coinbase
CryptoNewsTerminal Staff22 Aug, 2024
Grayscale Ethereum Trust Withdraws $4.16M Worth of ETH from Coinbase
Grayscale Investments, the world's largest digital asset manager, has withdrawn 1,602 ETH, worth approximately $4.16 million, from Coinbase Prime. According to data from Arkham Intelligence, the transaction occurred about an hour ago from an address holding Grayscale Mini Ethereum ETF (ETH). The withdrawal follows a similar transaction in January, where Grayscale transferred 1,000 ETH from Coinbase. The reasons behind the withdrawals are unclear, but Grayscale has been facing redemption pressure from investors due to the recent decline in the cryptocurrency market. Grayscale's Ethereum Trust is a closed-end fund that does not allow for redemptions in kind, meaning that investors who want to exit their positions must sell their shares on the secondary market. The recent withdrawals have raised concerns among some investors, as they could be a sign that Grayscale is facing liquidity issues. However, Grayscale has stated that it has sufficient liquidity to meet all redemption requests.
