What's going on with Grayscale ($GBTC) and bitcoin? As summarized by James Bianco:
1) Grayscale is closed-end fund that owns Bitcoin (BTC). It currently owns the equivalent of $16 billion in BTC. 2) Because GBTC is a closed-end fund, it can and does trade at huge discounts and premiums (see the bottom panel on the chart). As of yesterday's close, GBTC traded at a 25% discount to its Net Asset Value (NAV). 3) Many years ago, Grayscale filed with the SEC to convert its closed-end fund to an ETF in order to be able to create and redeem shares. This makes it easy to keep the price and NAV at nearly the same level. Until now, this conversion never got approved (the SEC has so far denied all spot bitcoin ETF applications) 4) Today, The Court of Appeal ruled IN FAVOR of Grayscale in their lawsuit challenging the SEC's decision to deny $GBTC's conversion to an ETF. This paves the way for the first "spot" bitcoin ETF. Source: James Bianco
The secret wallet that bought $3,000,000,000 worth of Bitcoin in the last 3 months belongs to Robinhood
While the market panicked, they bought. Source: Crypto Rover
Bitcoin's correlation to the sp500 has shown signs of breaking down Lower correlation boosts BTC's diversification potential
Source: Game of trades
Here's a chart comparing bitcoin liquidations on Thursday versus the FTX collapse in November 2022.
This feels like yet another sign of the drying #liquidity markets we have seen over the last few weeks. Source: The Kobeissi Letter
After falling from $29k Wednesday evening to $27.5k yesterday, #bitcoin crashed $2,000 in just 10 minutes overnight to hit a low of $25,314 on a massive order dump which quickly took out all stops
While it's not clear what the immediate catalyst is, the crash coincides with reports that Elon Musk's SpaceX has sold out all the BTC it previously acquired ($373 million).Others have pointed to China’s Evergrande Group filing for Chapter 11 bankruptcy in New York. The fall has taken Bitcoin's market cap below $500 billion for the first time since June 16 and hit lows not seen since June 20. Source: cointelegraph, zerohedge
Bitcoin selling intensifies wth
Some of it has been attributed to legal uncertainties surrounding Greyscale's lawsuit against the SEC, with a ruling coming as early as Friday Evergrande's bankruptcy isn't helping the mood. Source: Markets & Mayhem
Bitcoin trading volume just hit the lowest point ever recorded
Source: Bitcoin news
SEC delays set deadlines for Bitcoin ETF approval to early 2024
With a maximum 240-day window available to the #SEC to delay crypto ETF applications, some firms could wait until March 2024 to hear decisions on filings made in July 2023.
