Post
Topic
Board Speculation
Merits 10 from 1 user
Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
by
Biodom
on 20/03/2024, 15:19:05 UTC
⭐ Merited by El duderino_ (10)
Another $440 million outflow from you know who...

50 dumps of Grayscale.


 Roll Eyes

So another day of -1%, leaving them with ~58% from what they started with on 11Jan. Speculators will speculate on how low they'll go, and how fast they'll get there, but it won't be too long before they fade into history.

The CEO claimed that once outflows hit $12 billion they will lower the ETF fees.
I believe they are close to/over that mark now.

Something to do with covering probable fines or whatever. You can find the details if interested.

Whatever happened here exactly, we will probably find out eventually.

Usually, someone ends up behind bars it seems.  Cheesy

The behaviour of those who run away from the high fee is completely understandable. The funny thing is that the individual wisdom of running away from 1.5% fee leads to collective stupidity causing the current stall of the bull run. But I am not convinced that the fee is the main reason for these outflows. I've read some opinions that most of them didn't go in any other ETF company. May be the reason is that there are many people/companies that have had their funds locked up for years at a loss and are now rushing to release them at a very good profit.

A while back I quoted a long twitter thread where some pretty shady dealings of DCG/Genesis, investigated by SEC were discussed. It was funny for me that Boidom refuted them, as made up by me?!? Then what about the hundreds of pages on Internet? Are they also made up by me?  I will add just one quote from the many written on the matter:

Back in November, DCG's CEO Barry Silbert seemed optimistic that the company could weather the storm. Since then, however, things seem to have gotten worse because the company is under investigation and it has closed down its wealth management division called HQ this month. Moreover, Genesis sent home 30% of its staff this January after making a 20% employee cut in August last year.
https://www.bankfrick.li/en/news-and-insights/the-dcg-genesis-and-grayscale-saga-explained

But of course for each train there are passengers. There will be people, (later Boidom confessed he is a Greyscale investor), who will keep money in Greyscale, believing everything is fine. So, Greyscale won't go down to 0BTC, probably. The real bull run will start when they stop flooding the market with thousands each day.


To the substance: I don't understand the obsession what @ivomm, @BitcoinBunny and @Dragonvslinux display with regards to GBTC.

Like, who gives a f-k as long as the peg is maintained? So far it has been very orderly and helped inflows to other ETFs.
About the 1.5% fee and the endless discussions of it: again, it matter only in years, especially since they trade at peg to NAV or even with a small premium.
Incidentally, some other ETFs are trading at a small discount:
https://ycharts.com/companies/GBTC/discount_or_premium_to_nav

0.5% discount=4 months worth of GBTC fees, lol
Naturally, the 1.5% fee could cause small diffusion in time, but current flows are caused by something else.
Personally, I did not like the fact that the flows continued, so I divested 2/3 at a premium, kept 1/3 just in case premium would increase (posted this beforehand), which is contrary what the "crowd" expects, but very well may happen due to collaboration between Greyscale and Goldman Sacks.
Maybe those three peeps were short GTBC? I dunno, they seem to have a lot of venom against poor little Barry.

Finally, who is that Boidom?
Either spell it right or not at all, pal.