servus hodlers, enthusiasts, experts and noobs!
this morning I stumbled across a very interesting article about the grayscale bitcoin trust and its gigantic sell-off happening on 17th of july. in this post I want you to tell about:
- What is the grayscale bitcoin trust?
- Why is it crucial for bitcoin in the near future?
- What to do?
What is the grayscale bitcoin trust?
*"Grayscale Bitcoin Trust is a traditional investment vehicle with shares titled in the investors name, providing a familiar structure for financial and tax advisors and easy transferability to beneficiaries under estate laws."
In conclusion one could say a boomer method for institutional investors buying shares backed up with real bitcoins.
The interesting thing is that investors pay a "premium" price for the shares. This "premium" can be more OR less than the real price of bitcoin at the moment. In addition the shares are locked for 6 month, which gets us to the next important point. 17th of july.
- in this picture you can see that the premium price of BTC is -11.73%, resulting in a $31.36 holdings price per share and an $27.68 market price per share. so right investors would pay ~12% more than the real BTC price.
Why is it crucial for bitcoin in the near future?
On 17th of july 16.240 Bitcoin will be unlocked from the grayscale bitcoin trust resulting unexpected market behavior. Those 16K Bitcoin are worth (28.07.2021) USD 559.949.028. With this informations there are two possible scenarios which could have great impact.
Investors could hold their shares or buy more
Investors could sell their shares
In my opinion whatever happens, the july will be a very volatile time. If the investors sell-off their shares we could get trapped in the bear market for quite a while.
As you can see the highest unlock is on 17th of july. But you can also notice that there are zero unlocks after august potential ringing in the bull-market as everyone is calling right now!
What to do?
Unless youre a trader knowing what you do I would sit still, watch the market and take advantage of those times making my portfolio bigger and bigger. Personally I take advantage of the Dollar-Cost-Average effect by investing regular. Even if youre like me, those post getting you up to date about short term movements are worth in my opinion.
The crypto world teaches me everyday which is great if youre an enthusiast like me :)
Greeting from germany! ntz410
passiv income I use:
Honeygain- sharing traffic (5$ signup bonus!)
Brave - secure, fast, private browser with crypto income
Presearch - search engine with crypto income I use with Brave (25PRE bonus!)
other ways to gain crypto free:
noise.cash
read.cash
Pipeflare faucet
remember im not a financial advisor