Everyone knows that the bull market is about to start, but why do so many people still choose to sell? It's like a group of people on a boat waiting for the tide to rise, but there are always some people who choose to jump off the boat for various reasons.
First of all, we must understand that Grayscale’s shipments are not Grayscale’s own shipments, but the cash-out needs of customers. Imagine that investors who have been bored for a whole cycle in the bear market have finally waited for the approval of ETF. They can easily convert GBTC into ETF and then sell it at the market spot price. This temptation to cash out is simply too great for investors struggling to hold on in a bear market.
Secondly, there are still some people who entered the market when GBTC and Bitcoin spot prices were at a negative premium. At that time, the lowest negative premium reached 40%. Based on the lowest price of 15,000 in this bear market at that time, 15,000*0.4 was the buying price of GBTC, and one Bitcoin could be bought for US$6,000. These people were originally here to make arbitrage, but now that the ETF has passed and they have made huge profits, they naturally want to leave.
Finally, some people are concerned about management fees. Currently, Grayscale’s management fee is the highest at 1.5, while other competitors only have 0.2. Therefore, they choose to cash out from Grayscale, and then may flow into other Bitcoin ETFs with low fees, or into other investment products, such as funds, stocks, or real estate. After all, everyone’s money is hard-earned. Who doesn’t want to find a more affordable place to invest?
To sum up, Grayscale has brought considerable selling pressure to the market during this period. However, this is also the normal state of the market. In the world of investing, some people buy and some sell, some are bullish and some are bearish. Only by keeping a cool head and a long-term perspective can we find the best investment opportunities amid market fluctuations.
