In a few days, a significant event on the crypto market should take place. The unlocking of the Grayscale Bitcoin Trust (GBTC) shares in the amount of 16,240 BTC. Some analysts are wary of this event, believing that it will further reduce the value of Bitcoin.
But, there is another opinion on this matter. Representatives of the cryptocurrency company QCP Capital assume that nothing bad will happen. It is worth recalling what GBTC unlocking is.
Unlocking of Grayscale Bitcoin Trust
Grayscale Bitcoin Trust is one of the largest cryptocurrency funds. It is owned by Grayscale Investments. The fund invites private and institutional investors to trade BTC without directly contacting the asset. Accredited investors have the right to purchase shares of the fund directly. And then sell them after a six-month lockdown under the GBTC ticker.
That is, the shares of the Grayscale Bitcoin Trust fund have a deferred redemption mechanism. GBTC holders must hold their shares for six months before they can be sold. In July of this year, shares that were purchased in January will be unlocked.
This fund considered one of the most famous as it’s still the only one that allows you to trade BTC. Since a worthy alternative to GBTC shares has not yet been created, they are trading at a premium in relation to the value of the cryptocurrency on the spot market. But, over the past three months, GBTC shares have been trading at a discount. Therefore, Grayscale stopped buying Bitcoins in large quantities.
The Grayscale Bitcoin Trust functions similarly to an ETF, but is not registered with the US Securities and Exchange Commission (SEC), so only accredited investors have access to it.
Will BTC collapse after GBTC unlocked?
GBTC shares will be issued by the end of the month. On July 18, investors will be able to get access to 16,240 BTC. When the unlocking occurs, investors can either sell the shares at fair value, or leave them and then sell them.
If investors decide to sell, this could have a significant negative impact on the BTC rate, and possibly it will fall below the psychological mark of $ 30,000. According to JP Morgan analysts, investors are likely to sell shares, as the actions of regulators are getting tougher.
But QCP Capital experts point out that the market will not suffer and Bitcoin will not crash. They believe that another unlocking will not have any negative impact on the value of BTC, as well as on the entire crypto market. Their position stems from the fact that institutional holders now expect GBTC to trade at a premium again soon, and they will not sell everything all at once.
Sam Bankman-Fried, CEO of the FTX cryptocurrency derivatives exchange, also said that the unlocking of Grayscale Bitcoin Trust shares and their possible subsequent sale in the secondary market “does not matter much” for the Bitcoin price.
Who will be right, it will become clear at the end of July, the sale of the Grayscale Bitcoin Trust GBTC will take place.