Most investors who liquidate positions in GBTC from Grayscale, will direct funds to other Bitcoin ETFs, which will neutralize the current weakness of the first cryptocurrency. This was stated by Galaxy Digital CEO Mike Novogratz.
I disagree with this. While I think people will sell GBTC, I think most will switch into other ETFs — $BTCO being my favorite!!
Let's not miss the forest through the trees. It's now gonna be much easier for boomers to buy corn. And you can get 4×5 times leverage on this… https://t.co/ZJhumt3tzx
— Mike Novogratz (@novogratz) January 21, 2024
According to the top manager, in six months digital gold will be valued at more than it is now.
“Let's not miss the point because of attention to detail. Now it will be much easier for boomers to buy grains [монеты]. You can get four to five times leverage on Bitcoin. Current “indigestion” [слабость первой криптовалюты] will end. The price will be higher in six months.” – said the expert.
This is how Novogratz responded to the statements of analyst Chris J. Terry. The latter warned of Bitcoin weakness in the short term due to investors exiting GBTC. In his opinion, the trend will remain relevant over the next few weeks – until the process is fully completed. The specialist recalled that AUM product is $25 billion.
J. Terry accused Grayscale management of greed for maintaining the GBTC commission at 1.5%. [Большинство эмитентов в первые дни торгов продуктом установили нулевую комиссию, а затем повысили ее до 0,2–0,4%]
Well-known Bitcoin maximalist Tuur Demeester shares a similar point of view with Novogratz.
Huge negative news coverage for bitcoin and yet, it has simply hit some predictable resistance and is now trading in a range. pic.twitter.com/vVdUhoOkri
— Tuur Demeester (@TuurDemeester) January 21, 2024
“A huge flow of negative news arose around the first cryptocurrency. However, it simply encountered some predictable resistance and is now trading in a range.” – the expert explained.
The latest data from Bloomberg analyst Eric Balchunas does not support J. Terry's point of view. According to the specialist, investors withdrew $2.8 billion from GBTC, while $4 billion were invested in the “nine” other ETFs. The net inflow amounted to $1.2 billion.
Note: the more we think about it and talk to ppl, prob only a small minority of the GBTC outflows are likely going to the Nine right now as much of it was FTX and traders who arb-ed discount. Also the proportionality of the flows to the size of the firm is almost perfect,…
— Eric Balchunas (@EricBalchunas) January 20, 2024
“The more we think about it and talk to people, the more likely it is that only a small portion of the GBTC outflow right now will go into the nines, since most of it was due to FTX and traders who were betting on discount collapse“, – he added.
Let us recall that critic of the first cryptocurrency Peter Schiff predicted a further fall in the value of digital gold due to a decrease in demand for spot Bitcoin ETFs.
Previously, Grayscale CEO Michael Sonnenshein predicted the collapse of most products. In his opinion, only “two or three exchange-traded funds will probably achieve some critical mass.”
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