OVER 25,000 BTC Purchase via Grayscale Bitcoin Trust: A Good News or Bad?
As recorded, up to 26,000 Bitcoins was bought by people through just GBTC — Grayscale Bitcoin Trust — only in last 4 months. The question mark here is that these coins are locked for one year.
While this might be a great news for the Bitcoin community, don’t you think such an enormous BTC transfer might affect the crypto ecosystem when you consider the price shifts?
Below are some of the figures which show how much of Bitcoins are being bought by people through institutional investors. GBTC can only be bought by institutional investors, which means people buy it through their 401k etc.
It is worthy to note that in 2019, more than $400 million worth of BTC was bought from GBTC. And all these coins have a 1 year lock in period. The effect?
This is the one reason the price of a Grayscale Bitcoin Trust BTC shares is much higher than simple market price of just BTC.
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Here are detailed figures for number of bitcoins held in this single trust, with latest number at last row:
Do you think the lock in period won’t affect someone wanting to just trade GBTC, or was this the reason for BTC at $10,000 before falling back?