institutional bitcoin (B T c) Investors are in the news as an upcoming major cashout date talks of fresh price volatility.
As noted by popular Twitter commentator Lumdart and others this week, the focus is on buyers and sellers of Grayscale Bitcoin Trust (GBTC) as bitcoin nears $40,000.
July means BTC price volatility
A giant in the institutional bitcoin space, GBTC has over $24 billion in assets under management.
It is not available consistently – as of Cointelegraph Reported, the Trust operates with periodic closings, coinciding with its buy-in price trading at a discount from the spot price this year.
It has become negative “GBTC premium” a key point In itself, as invested money is locked in for a set period and then released, allowing investors to cash out at certain times, depending on when they bought was.
The combination of negative premium relative to spot and a large unlocking of funds means that July will be particularly interesting for BTC price action. Previously, such an alignment meant increased volatility.
With 16,000 BTC ($627 million) released, July 19 will see the biggest single unlocking day ever.
For the popular pseudonymous trader “Loomdart, this nonetheless provided an opportunity for selling pressure to stabilize later, paving the way for BTC bulls to crush long resistance lines.
You guys realize we are already denying gbtc unlock and after most of them are over like… 0 spots btc sellers left right?
— loomdart (@loomdart) June 14, 2021
This would be a refreshing counterpoint to the broader bearish picture on institutional markets, with open interest in bitcoin futures lower than it was before the May price plunge to $30,000.