GBTC Sellers Buying Bitcoin As Genesis Bankruptcy Fears Grow, Says Crypto Analyst
By Benzinga
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 (OTC:GBTC) shares.
What Happened: On Monday, Woo tweeted that the pessimistic attitude surrounding GBTC has been favorable for Bitcoin (CRYPTO: BTC). “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.
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— Willy Woo (@woonomic) December 5, 2022
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 (NASDAQ: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.
