Looking at the bigger picture, nothing bad is happening - everyone who thinks the price is too high will have the opportunity to buy cheaper, and on the other hand, the more Grayscale sells, the better for the future. Such a concentration of BTC in the possession of only one company is always nothing but a big risk.
The Grayscale sold BTC seems to be going to Black Rock and maybe Fidelity.. so a shifting of the risk rather than an elimination of the risk, but we will see.
~snip~
The sold BTC can go in any direction, but it is still better that a dozen companies have that amount of BTC than only one that, in case of hacking or some other accident, would cause such an upheaval on the market that it would throw us back, not only in terms of the price of BTC , but also the trust that has been built up over the years.
However, even if Grayscale would not be in the equation with its BTC stock, the question is how much we overestimated the spot ETF when it comes to the US market, given that it has existed for years in some other countries such as Canada and has not resulted in too much investor interest.
Big companies like BlackRock and Fidelity with their trillions under management were a very good story, but the question is how much investors actually want to invest in Bitcoin regardless of which instrument someone provides them.