Community Trust ScoreVerified
- Unlocking 16,000 GBTC from minimum lockup period
- Nothing to Worry only Weekend volatility
- Market Neutral Strategies Likely
Grayscale Bitcoin Trust’s share unlock. We need to wait to see the impact on the price. All the eyes are keenly watching how the price trends will change. There will be an unlocking of 16,000 Bitcoin. FUD is already around. There are already many predictions about the unlocking of the funds in the 6-months lockup maturity. Curiosity is building around the results of fears vs. fundamentals.
JPMorgan expressed that the lockup expiration will cause downward pressure on Bitcoin’s price. However, several cryptocurrency analysts feel that the lockup expiration will not create as much high volatility as expected.
For those who are not sure, due to the nature of the Grayscale Bitcoin Trust, institutional investors who purchase the funds directly will have to hold the shares for six months before selling on the secondary market. The expectation is that after the unlocking, about 5% of the funds will be sold over few weeks.
The GBTC sell-off is expected to exert downward pressure on the GBTC and, more generally, on the Bitcoin prices.
Grayscale recently expressed: 07/16/21 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products. Total AUM: $28.0 billion $BTC $BCH $ETH $ETC $ZEN $LTC $XLM $ZEC $BAT $LINK $MANA $FIL $LPT.
Community response: It seems to be that the Unlock GTBC has not cause the expected drop on the Bitcoin price. On the other side demand increase. BTC Bullish.
The biggest unlock is Sunday. Like you said, nothing to worry about. Weekend volatility as usual.
Everyone is waiting to see what happens following unlock. Of course, the weirdest outcome would be staying within the range.
Last bit of Grayscale GBTC freeing up its lockup period this weekend and the next few days. I have heard opinions of that being positive, negative, or no effect.
Many of them will hold off selling to avoid immediate losses.
Ryan Todd, a research analyst, stated, I think the lockup is more of something to point to in the market doldrums of summer and post a 50%+ correction from bitcoin’s market top. There’s even an argument to be made that some investors that targeted market-neutral trading strategies to harvest the GBTC premium by borrowing bitcoin and sending it to the trust six months ago will now have to buy back physical bitcoin to pay back the borrowed bitcoin.
