This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out.IF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.COGBTC shares unlock this month.The potential implications of this unlock have been discussed ad nauseam, not only by the crypto community but by the Wall Street world as well, with JPMorgan pointing out that this event could lead to more downside.To buy into the Grayscale Bitcoin Trust, accredited investors need to purchase a minimum of $50,000 in BTC and agree to lock up their investment for 6 months. For most of GBTC's history, there was a large premium, so investors were able to sell 6 months after buying for a predictably higher price. This trade was how many companies, like BlockFi, were able to offer high yields.Right now, the Grayscale premium has dropped to discount territory at -8.4%, which wasn’t the case in January when the coins were purchased. At that time the market was raging, and major investors were fighting to gain access to the trust with the premium reaching as high as +40%. The trust became so popular that Grayscale had a waitlist to enter, and money was literally turned away because the trust wasn’t ready to manage the stacks of cash. As you know, the market has reversed. All of the investors who bought in 6 months ago are now seeing their Bitcoin unlocked, meaning they will be able to sell it, if they choose to do so.Investors bought for different reasons and clearly some of the GBTC buying was purely a play on premium speculation. Investors were hoping that the premium predictably would continue to rise leading up to the unlock, guaranteeing a better sale price. The trust saw, “inflows of $2 billion in December, followed by $1.7 billion in January.” A lot of the shares from December have already been released, but through the month of July, there will be another major wave of coins released, which gives investors the opportunity to sell their GBTC.As mentioned above, some believe this could be a bearish event due to imminent selling and a lack of renewed interest in a trust that has dropped down to discount levels. Of course, others have argued the opposite, stating that there are investors who will take advantage of the discount and that those at a small loss will hold their coins, rather than sell now.I spoke with Lyn Alden last week on the podcast. She believes that the damage from GBTC is already done and that this will be a nonevent. Her reasoning is that the entire market dropped ALREADY because of Grayscale - when interest in the trust dissipated, Grayscale was forced to stop buying to fill orders. Grayscale was the single largest public buyer of Bitcoin in the world. That was a huge drop in demand, hence the frictionless environment for a correction, assisted by wide scale liquidations.Regardless of what happens, this is a temporary event, but one that is worth watching.There is NO PODCAST TODAY because of the July 4th holiday weekend. It will be back on Thursday at the regularly scheduled time!In This Issue:Grayscale UnlockBitcoin Thoughts And AnalysisAltcoin ChartsThe Philippine Stock Exchange Is Adding CryptoErnst & Young Is Working To Solve Ethereum’s Scaling ProblemsBarclays Bank Blocks BinanceSupply Of BTC On Exchanges Hits Yearly LowMy Recommended Platforms And Tools
The Wolf Den #279 - Grayscale Unlock
The Wolf Den #279 - Grayscale Unlock
The Wolf Den #279 - Grayscale Unlock
This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out.IF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.COGBTC shares unlock this month.The potential implications of this unlock have been discussed ad nauseam, not only by the crypto community but by the Wall Street world as well, with JPMorgan pointing out that this event could lead to more downside.To buy into the Grayscale Bitcoin Trust, accredited investors need to purchase a minimum of $50,000 in BTC and agree to lock up their investment for 6 months. For most of GBTC's history, there was a large premium, so investors were able to sell 6 months after buying for a predictably higher price. This trade was how many companies, like BlockFi, were able to offer high yields.Right now, the Grayscale premium has dropped to discount territory at -8.4%, which wasn’t the case in January when the coins were purchased. At that time the market was raging, and major investors were fighting to gain access to the trust with the premium reaching as high as +40%. The trust became so popular that Grayscale had a waitlist to enter, and money was literally turned away because the trust wasn’t ready to manage the stacks of cash. As you know, the market has reversed. All of the investors who bought in 6 months ago are now seeing their Bitcoin unlocked, meaning they will be able to sell it, if they choose to do so.Investors bought for different reasons and clearly some of the GBTC buying was purely a play on premium speculation. Investors were hoping that the premium predictably would continue to rise leading up to the unlock, guaranteeing a better sale price. The trust saw, “inflows of $2 billion in December, followed by $1.7 billion in January.” A lot of the shares from December have already been released, but through the month of July, there will be another major wave of coins released, which gives investors the opportunity to sell their GBTC.As mentioned above, some believe this could be a bearish event due to imminent selling and a lack of renewed interest in a trust that has dropped down to discount levels. Of course, others have argued the opposite, stating that there are investors who will take advantage of the discount and that those at a small loss will hold their coins, rather than sell now.I spoke with Lyn Alden last week on the podcast. She believes that the damage from GBTC is already done and that this will be a nonevent. Her reasoning is that the entire market dropped ALREADY because of Grayscale - when interest in the trust dissipated, Grayscale was forced to stop buying to fill orders. Grayscale was the single largest public buyer of Bitcoin in the world. That was a huge drop in demand, hence the frictionless environment for a correction, assisted by wide scale liquidations.Regardless of what happens, this is a temporary event, but one that is worth watching.There is NO PODCAST TODAY because of the July 4th holiday weekend. It will be back on Thursday at the regularly scheduled time!In This Issue:Grayscale UnlockBitcoin Thoughts And AnalysisAltcoin ChartsThe Philippine Stock Exchange Is Adding CryptoErnst & Young Is Working To Solve Ethereum’s Scaling ProblemsBarclays Bank Blocks BinanceSupply Of BTC On Exchanges Hits Yearly LowMy Recommended Platforms And Tools