Not an ELI5, sorry, but you're probably a little older than five...
Especially take note the bit at the end in italics.
A neater explanation involves Grayscale Bitcoin Trust, a publicly listed bitcoin warehouse that led the lobbying for US spot ETFs to be legalised. GBTC had since 2017 been operating a bitcoin lobster pot: anyone with bitcoins could give them to Grayscale Investments in exchange for OTC-traded shares in the trust, but there was no way to get the bitcoins back. GBTC last week converted to an ETF, giving its backers their first opportunity to reclaim the $28bn or thereabouts of bitcoin it had collected. And in the four days following spot ETF approval GBTC redemptions have totalled more than $1.6bn.
It’s also possible, however, that some GBTC shareholders just want to cash out. And though it’s silly to draw conclusions from only four days of data, it’s interesting that GBTC redemptions on Tuesday exceeded total inflows for all the other US spot ETFs.
I get that people are selling GBTC but what I don’t understand is that the ETFs are seeing net inflows even with the outflows from GBTC, so this should be positive for price, no?
Well you also want to factor the amount of BTC that arrives in the exchanges from the mining pools that are really high now… i check it everyday on glassnode… when that suply crunch will arrive the pressure will change side… I am still bearish on the short term because of all these facts, then trading sideways for a few month and then, to the moon when the halving effect kicks in ( around the end of 2024)
I get that people are selling GBTC but what I don’t understand is that the ETFs are seeing net inflows even with the outflows from GBTC, so this should be positive for price, no?
Not an ELI5, sorry, but you're probably a little older than five...
Especially take note the bit at the end in italics.
https://archive.md/sVdrA
I get that people are selling GBTC but what I don’t understand is that the ETFs are seeing net inflows even with the outflows from GBTC, so this should be positive for price, no?
Because of the GBTC massive sell offs… but not only… today a big whale made a move and transferred more than 11k BTC to coinbase for exemple…
So is it retail that is causing the dump in price?
What I don’t understand is that the ETFs are seeing net inflows even with the outflows from GBTC, so this should be positive for price, no?
Well you also want to factor the amount of BTC that arrives in the exchanges from the mining pools that are really high now… i check it everyday on glassnode… when that suply crunch will arrive the pressure will change side… I am still bearish on the short term because of all these facts, then trading sideways for a few month and then, to the moon when the halving effect kicks in ( around the end of 2024)
I think this is a good possibility
Sell the news.
Who is selling, retail?
I get that people are selling GBTC but what I don’t understand is that the ETFs are seeing net inflows even with the outflows from GBTC, so this should be positive for price, no?
People that front ran the etf approval want to lock in their profit, and maybe they want to sell more than the etfs are buying.