Bitcoin (BTC) is bouncing back despite ongoing unlocking events by the Grayscale Bitcoin Trust (GBTC) – and most of the stocks have already been released.
According to data from the tracking resource Bybt, the combined remaining unlocks have fewer shares than those that were released just a weekend ago.
On July 18, GBTC shares valued at around 16,240 BTC ended their six-month lock-up period. The event was the largest of its kind in just one day and went well, with heated debates over the potential impact on the price of Bitcoin.
Monday’s BTC price decline comes timely in relation to GBTC, in line with the narrative that such large issues will be followed by a sell-off.
Even if that were true, Bitcoin holders now have a silver lining – it is only scheduled to unlock until August 25, and the number of shares outstanding is fewer than Sunday’s batch.
In reality, however, the lack of evidence of the jailbreak resulted in the sell-off. As various sources point out, the Bitcoin markets themselves are actually completely exempt from such events – GBTC shares cannot be converted into BTC, which can then theoretically be sold for cash or stablecoins.
“Grayscale just had the biggest GBTC unlock ever and nothing exploded,” popular Twitter commenter Lark Davis said Written on Monday, citing Bybt numbers.
This “FUD” nonetheless infiltrated some of the most famous names in the financial industry, including banking giant JPMorgan.
“The sale of GBTC shares exiting the six-month lock-up period in June and July has turned out to be additional headwinds for Bitcoin,” a report said earlier this month.
Meanwhile, as Cointelegraph reported, interest in GBTC and other Grayscale products remains.
Related: Grayscale ‘100% Committed’ to Turn GBTC into a Bitcoin ETF – CEO
Both Rothschild Investment Corp and ARK Invest added to their shares in July, and the company added 310,000 shares to its Bitcoin holdings.
“GBTC makes hundreds of millions of dollars in face value every day and it really is the easiest way for more investors to get exposure to cryptocurrencies alongside stocks, bonds, ETFs and other things they might own,” Grayscale CEO Michael Sonnenshein told Bloomberg Monday.
A survey of institutions run by the asset manager Fidelity also showed positive long-term approaches for cryptocurrencies, with 71% of those surveyed planning to enter the market in the future.
© 2021 COINCU Financial Group Inc. Address: Road Town, Tortola, British Virgin Islands (BVI).
Email us: [email protected]