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Institutional investors are turning their attention as Grayscale’s upcoming event sparks a heated struggle over Bitcoin’s new price volatility.
The focus will be on Grayscale Bitcoin Trust (GBTC) buyers and sellers as Bitcoin hovers near $40,000. GBTC has more than $24 billion in assets under management.
An investment fund operates with periodic closings, which coincide with the trading of the fund’s bid price at a discount to the spot price. The highlight here is the negative GBTC premium, as investment funds are locked for a certain period of time and then released, allowing investors to withdraw at certain times depending on when they buy.
Institutional demand for $GBTC and $QBTC is decreasing.
– Both QBTC, GBTC have negative premiums since Mar. 21′
– GBTC is holding $BTC since the last purchase on Feb. 21′
– QBTC reduced 7.98K of $BTC at the beginning of Jun. 21′View Charts 👉https://t.co/WxPd4uHoDe pic.twitter.com/IVjYpFFmhY
— CryptoQuant.com (@cryptoquant_com) June 10, 2021
According to data from CryptoQuant, we can easily see a correlation between GBTC premium and Bitcoin price action.
Next, let’s look at the February story. Like Coinlive reported on February 2, Grayscale could trigger the blockbuster Bitcoin bull run, and the results have been quite successful as 2 months later, Bitcoin is close to reaching $65,000.
At the time, the Grayscale Bitcoin Trust (GBTC) premium had just hit its lowest level since April 2019. With the GBTC index trending downward, combined with large amounts of unlock money coming up, means that July will be especially interesting for BTC price.
July 19 will see the biggest single unlock date, with 16,000 BTC or $627 million released. This would constitute a new counterpoint to the broadly bearish picture in the institutional markets.
Synthetic
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