Grayscale unlockings could bring cheer to bitcoin

[Rakin343]

The bitcoin market could get a boost this month from the expiration of investor restrictions on the sale of shares in the Grayscale Bitcoin Trust (GBTC), the world’s largest cryptocurrency fund. Something digital-asset analysts and investors say it’s possible some of these investors might need to enter the market to buy bitcoin – to repay cryptocurrency loans they used to finance their original purchases of the GBTC shares.
“Lots of bearish chatter around GBTC unlocks whilst conveniently ignoring that in-kind subscriptions funded by debt will ultimately translate into spot buying,” crypto services provider Amber Group tweeted. The view contrasts with a forecast published last month by analysts at JPMorgan, the largest U.S. bank, who argued the end of the lockup period would weigh on the GBTC shares and bitcoin.“Selling of GBTC shares exiting the six-month lockup period during June and July has emerged as an additional headwind for bitcoin,” the JPMorgan strategists, led by Nikolaos Panigirtzoglou, wrote on June 24. The dynamic would lead to “downward pressure on GBTC prices and on bitcoin markets more generally.Source