WBTC Supply Drops as Institutional Investors Withdraw Funds
CryptoNewsTerminal Staff10 Sep, 2024
WBTC Supply Drops as Institutional Investors Withdraw Funds
Wrapped Bitcoin (WBTC) supply has decreased significantly following the announcement of a major change to its custody model. On-chain analyst Tom Wan reports that over $96 million worth of WBTC has been redeemed since the news broke. This mass redemption is likely due to concerns about centralization, as the new custody model will involve Tron (TRX) founder Justin Sun. Some institutional investors may be wary of having their funds held by a single entity, especially one associated with a controversial figure like Sun. It remains to be seen whether the WBTC supply will continue to decline. However, the recent withdrawals indicate that some investors are seeking more reliable wrapped BTC options.
