Popular analyst Willy Woo said that the fear of Genesis going bankrupt is one of the major factors retail investors are selling Grayscale Bitcoin Trust GBTC shares.
What Happened: On Monday, Woo tweeted that the pessimistic attitude surrounding GBTC has been favorable for Bitcoin BTC/USD. “The GBTC fears is a bearish cloud hanging over the market. But counterintuitively part of the impact has been bullish for BTC price,” he said.
According to Woo, over 37.5% of investors who sold GBTC bought spot BTC to take custody.
The GBTC / DCG / Genesis fears is a bearish cloud hanging over the market. But counterintuitively part of the impact has been bullish for BTC price.— Willy Woo (@woonomic) December 5, 2022
37.5% of people who sold GBTC bought spot BTC to take custody. Selling GBTC does not impact BTC price, buying spot does. https://t.co/wUh5m8OVrm
On Nov.22, Cathie Wood-led ARK Investment Management bought over 176,000 shares of GBTC at an estimated valuation of $1.46 million. The purchase was done via the ARK Next Generation Internet ETF ARKW. ARK’s purchase came at a time when the GBTC fund is gaining focus due to the asset manager stating it will not share the proof of reserves with customers.
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Price Action: Apex crypto Bitcoin traded lower on Monday evening at $17043.42, according to Benzinga Pro.
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