Seeing that Grayscale transferred BTC to CB to dump the market again and was severely criticized by retail investors, I can't help but say:

1. Grayscale has no right to sell BTC. As a custodial institution, the 600,000 BTC it holds corresponds to GBTC and is the user's asset.

2. The reason why Grayscale sold BTC was that GBBTC was sold.

Grayscale users sell GBBTC--> Grayscale sells BTC synchronously--cash out the sold USD to users. Conclusion: Therefore, the reason why Grayscale keeps selling BTC is that GBBTC is being sold off

So why was GBTC sold off after the ETF was approved?

reason:

1. Grayscale charges 1.5% for GBTC, while the fees for newly launched ETFs are generally 0.3%-0.4%. For users, the cost of holding BTC is 3-4 times higher with Grayscale. Therefore, many users will sell GBTC and switch to other BTC ETFs (such as BlackRock's IBIT). However, there is a delay in this process (T+1). Users sell GBTC--Grayscale is forced to sell BTC to users for cash--users use USD to buy BlackRock's ETF--BlackRock uses USD to buy BTC

The problem here:

1. There is a time delay, that is, Grayscale's sale of BTC and BlackRock's purchase of BTC are inconsistent, and BlackRock may also buy BTC OTC, and it is possible that it directly buys CB's own inventory, so some funds may not directly flow into the secondary market.

2. Some GBTC users also took profits (GBT was at 15,700 at the end of 2022, and the price of GBT was 8,600, which was equivalent to 60% off the spot price of BTC. Such discounts have existed for a long time). These users may have sold GBT to take profits.

As for why Grayscale's boss didn't adjust the GBTC fee rate from 1.5% to 0.4%? Grayscale's boss said that 1.5% is a necessary cost to keep the fund running normally. He meant that 1.5% is necessary. (This is what he said himself. Whether BlackRock's 0.4% can cover the fund cost is unknown.)

Overall, after the ETF was approved, a large amount of funds entered the market. Grayscale still has 540,000 BTC, and it continues to sell 10,000 BTC every day. On the ETF side, a large amount of funds continue to be bought. Fluctuations are inevitable, and BTC may continue to be traded by Grayscale for at least one month in the short term.

In fact, Grayscale dug out the GBTC mine at 41,000, which is a good thing for the long bull trend of BTC. It allows GBTC profit-taking to exit the market and exchange GBTC for other ETFs. It fully changes hands at 41,000, which is a preparation for the continued bull trend in the future. #比特币BTC #ETF #灰度