FTX CEO: Unlocking GBTC isn’t really important for Bitcoin

FTX CEO Sam Bankman-Fried has confirmed that the release of Grayscale Bitcoin Trust (GBTC) shares in the secondary market for Bitcoin “doesn’t really matter.”

Sam Bankman-Fried – CEO of FTX

Banker Fried to explain that there will be pressure on the crypto market does not rule out that “something” could happen.

“Remember, most GBTC creators are arbitrage. Most would rather place a long order than buy in the market. The activation requirement does not matter for Bitcoin, if people sell GBTC, most of them will buy Bitcoin against the pressure to sell. “

Grayscale Bitcoin Trust has a delayed return mechanism: GBTC creators have to hold their shares for half a year before selling them.

The GBTC shares acquired in January are expected to be activated in July.

According to the Bybt, 16,240 BTC ($ 560 million at press time) will be released on July 18. A total of 40,000 BTC ($ 1.4 billion) is expected to unlock this month.

Source: Bybt.com

Up and down stories

Cryptocurrency experts and analysts are divided on the effects of the unlock on the Bitcoin price.

JPMorgan strategist Nikolaos Panigirtzoglou made a bearish prediction last month, predicting that GBTC stock will have a bad impact on the crypto market:

“The sale of GBTC shares with a six-month lock-up period in June and July appears to be having a negative impact on Bitcoin.”

On the flip side, the Kraken Intelligence research team takes the opposite view, arguing that unlocking $ 560 million will not seriously affect the crypto market:

“Despite 40,000 BTC in GBTC shares that were activated in July, the market structure indicates that the activation will have no effect on Bitcoin in the spot market.”

Meanwhile, the crypto financial services company Amber Group suspect that institutional investors who borrowed bitcoin in early 2021 to take advantage of the trust’s high premium will now have to buy back bitcoin on the spot market to repay the debt.

“A lot of pessimistic talk about the activation of GBTC, while it is easy to overlook the fact that financing subscriptions in physical Bitcoin (debt) will eventually lead to purchases on the spot market.”

GBTC stock has been trading below its net asset value (NAV) since the beginning of May due to increasing competition and declining interest from institutional investors in Bitcoin.

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According to U.Today

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