IMPORTANT đ¨
Why is Grayscale Dumping BTC ?
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Before the spot ETF approval, GBTC used to redeem its shares by giving investors USD value, but they never sold the BTC.
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That's why Grayscale became one of the largest BTC holders, beside Satoshi.
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Now, with the spot ETF approval, investors are pulling their money out of GBTC for two reasons.
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âĄď¸ Grayscale is charging a 1.5% yearly management fee, which is 5â6 times higher than other ETF issuers.
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âĄď¸ A lot of investors bought GBTC at a 40% discount, and now it's at 0%, so they are exiting their positions.
In both scenarios, GBTC now has to sell BTC to pay it back.
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When Will This Stop?
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This can take a few weeks, and during that time, BTC can go sideways or even go down.
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Once it settles, investors will put their money from GBTC into other ETFs that have a low management fee.
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Remember, this is a long-term game, and you need to have patience; otherwise, you will lose your BTC to Wall Street.