About an hour ago, two wallets that had held Bitcoin for over six years each moved 4,000 BTC, totaling approximately 8,000 BTC.
1. These wallets were originally labeled as belonging to Xapo Bank, but it is highly likely that Coinbase Prime (institutional custody) currently holds ownership of these funds.
2. On August 15, 2019, Coinbase acquired only Xapo’s institutional custody business, in a deal worth approximately $55 million.
3. Following the acquisition, Xapo’s institutional clients agreed to transfer their assets to Coinbase Custody, resulting in the movement of over 514,000 BTC at the time.
4. Right before today’s 4,000 BTC movement, Coinbase Prime Custody wallets showed internal activity, which strongly suggests that these funds are still managed under Coinbase Prime infrastructure.
(Refer to image 2 for on-chain movement)
Conclusion:
This transfer is not a retail move, nor is it a personal sale or exchange deposit.
Instead, it’s highly probable that:
These coins were already held within Coinbase Prime Custody, and
The move was made either to replenish OTC liquidity (which has been declining rapidly),
Or to settle a direct OTC purchase of 8,000 BTC by a corporate or ultra-high-net-worth buyer.
In my personal opinion, the transfer pattern differs significantly from ETF-related flows such as BlackRock’s, which also utilize Coinbase Prime.
Thus, I believe this move is not ETF-driven, but rather an indication of direct acquisition by a single entity.
Written by Mignolet
