After rising ~$3,000 on the Grayscale news, prices just fell $1,000 in a matter on minutes
In less than a day, Bitcoin has shed nearly all the gains it made from Grayscale Investment's court victory against the United States Securities regulator. On Aug. 29, Bitcoin popped to a two-week high after a judge ruled that the Securities and Exchange Commission was “arbitrary and capricious” when it rejected Grayscale’s spot Bitcoin ETF application. However, the SEC’s Aug. 31 decision to delay seven pending spot Bitcoin ETF applications sent Bitcoin’s price downward — falling nearly 5% in the 24 hours to 12 am UTC Sep. 1. This could brutal move coud also be a sign of drying liquidity in the market. This is indeed the 4th "flash-crash" happening on bitcoin this year Source: Cointelegraph, The Kobeissi Letter
What's going on with Grayscale ($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
A nice tweet by Rich Kleinbauer
In February 2020, 70% of private sector employee schemes were allocated to long-term debt (mostly UK Gilts). This investment is down -53% since then, i.e a MINUS 37% contribution to performance...
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.
We will know about the Grayscale SEC outcome TODAY at around 11am EST (Grayscale Bitcoin Trust has filed to convert its Trust into spot bitcoin etf)
Only a small fraction of cases have taken longer to get decision. So odds are pretty good. See below: Source: Bloomberg, Eric Balchunas
Energy continues performing very well. The $XLE (energy stocks etf) is breaking above big levels, and the 50 day is crossing the 100 day...while the crowd gave up on energy longs at recent lows
Source: TME
The evolution of fixed income ETFs in one picture...
This chart really shows off how far things have come in 20 years and how far the ETF industry goes with an asset class. Source: Todd Sohn thru Eric Balchunas
Michael Burry top holdings are two Chinese ADRs at the time the $KWEB etf is starting to outperform $QQQ
Source: The Long Investor
