I don’t have the chart saved but Jan-Mar coins from whales were being loaded onto exchanges and dumped hard into retail FOMO. At the same time we see GBTC go from a premium to a discount. It had everything to do with selling the news event timing of coinbase.
Barry blames the GBTC discount on ETFs so he doesn’t spook the market. Can’t really blame the guy given the narrative of the bullrun has been institutional adoption.
Nobody gives a shit about a 2% fee when institutions were just buying at a 30% discount a week ago. The discount has more volatility swings in a day than the fee.
Then GBTC approaches 0% again it’s will mean institutions are buying again in volume.
Many things were happening back in 2021 but what happened with GBTC was that they halted all new investments. Being that anyone invested in the fund had a 6 month lock up period, it is now VERY clear the investors were in it for the premium (earlier investors dumping on the later tranches,) and it slowly began to bleed out. The excuse given was that the fund did not have enough BTC to back it up, and that Grayscale was basically printing certificates out of thin air. THAT's when they stopped buying BTC, which coincides, more or less, with BTC's top.
And yes, the 2% fee IS an issue precisely because they fund their operations by selling BTC. Since they have no investors and GBTC has gone to shit, the money runs out quickly, hence their selling. God knows how many BTC they are unloading onto the market now.
And yes, Sonnensheim and Silbert are conts, idiots. Their incompetence is stoopid beyond belief now. Still charging 2% in a world where everybody else is charging <1%.