Much of GBTC's outflows come from Genesis selling shares, says analyst
Genesis appears to be selling its GBTC shares to buy bitcoin, according to an ETF analyst.Bitcoin’s price fell below $64,000 on March 22.
Bitcoin's price fell below $64,000 on March 22, and it seems that the digital asset financial firm Genesis is trading in its GBTC shares to buy the dip, says Eric Balchunas, senior ETF analyst at Bloomberg.
"The nine new Bitcoin ETFs have taken in about $1.2 billion in past 5 days as price declined 8%," Balchunas said on the social media platform X. "GBTC had outflows yes, but it is largely Genesis (we know this for fact), who is simply exchanging GBTC shares for spot BTC, so net neutral event (plus GBTC is all pre-ETF money). Add it up, the ETFs have been net buyers of BTC (and none of the new money has left in fact more has come in). As usual, when it comes to selloffs, the call is coming from inside the house."
An X user also connected 16,800 BTC entering two of Genesis's wallets may have been derived from GBTC outflows.
GBTC experienced a record daily outflow of $642.5 million on March 18, with $1.84 billion of total outflows between March 18 and March 21, according to The Block's Data Dashboard.
GBTC is a converted spot bitcoin ETF issued by the digital asset management firm Grayscale Investments .
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
The most dangerous divergence in U.S. stocks: ordinary stocks have already plummeted, how much longer can AI giants hold on?
Significantly tightened financial conditions are heavily impacting ordinary stocks in the US stock market, with the median S&P 500 constituent falling 15% from its peak and the equity risk premium dropping below zero. Rising US Treasury yields and oil prices have pushed the financial conditions index sharply higher, resulting in a severe deterioration in breadth beneath the apparent calm of the index. Market divergence is intensifying, raising the core uncertainty of whether ordinary stocks will catch up or the index will converge downward.
Will APT’s price clear $0.87 after Aptos’s launch of Block-STM v2 upgrade?
Sui integrates Alibaba Cloud for AI payments, price eyes $1.40 target
Wall Street sets the midterm election price: Democratic Party factors surge 20%, but the market remains in a "blind zone"
The "Democratic Factor" built by JPMorgan has risen by about 20% since August, while the S&P 500 has only increased by 2.6% over the same period. Prediction platforms show that the probability of Democrats winning both chambers has surged from 23% in August to 64%. Historical data from Goldman Sachs indicates that this probability typically falls by about 5 percentage points on average before Election Day. There is a clear split among institutions: JPMorgan advocates buying on dips, while Bank of America warns that a Democratic sweep could lead to a drop of more than 10% in the stock market.
Crypto prices
More
