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🥜 When will the selling end?
PLUS: ETF Selling Pressure
Today’s edition is brought to you by Animus Technologies.
GM to all 42,119 of you. Crypto Nutshell #214 whirlin’ in. 🌪️ 🥜
We’re the crypto newsletter that's as legendary as a group of adventurers on a quest to find the Holy Grail... ⚔️ 🏰
What we’ve cooked up for you today…
🤔 Why is Bitcoin crashing?
😳 When will it end?
💧 ETF net outflows
💰 And more…
MARKET WATCH ⚖️
Prices as at 5:35am ET
Only the top 20 coins measured by market cap feature in this section
WHY IS BITCOIN CRASHING? 🤔
BREAKING: FTX sold ~$1B of Grayscale's Bitcoin ETF, explaining where majority of outflows came from
Investors have sold over $2 billion worth of GBTC since the launch of Grayscale’s ETF.
We thought we were done with FTX’s shenanigans…
BUT, according to CoinDesk, a large chunk of Grayscale outflows have come directly from FTX.
FTX’s bankruptcy estate reportedly dumped 22 million shares worth almost $1 billion.
BTC's price has fallen since bitcoin ETFs were approved. In theory, now that FTX is done selling its substantial holdings, the selling pressure could ease since a bankruptcy estate liquidating holdings is a relatively unique event.
Since January 11th, Grayscale’s Bitcoin holdings have fallen from ~619,000 to ~552,000.
That’s a net outflow of 67,000 Bitcoin… 📉
(~$4.06 billion worth of BTC at todays prices)
An absolutely insane amount of Bitcoin flooding the market.
And a perfect explanation for why Bitcoin is “crashing”. 📉
However it’s worth pointing out that FTX selling a large amount of GBTC is a relatively unique event.
Meaning we can expect this sell-side pressure to ease moving forward. (more on this in the following section) 🤞
TOGETHER WITH ANIMUS 👾
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WHEN WILL IT END? 😳
With Bitcoin breaking below $40,000 today, one question is on everyones mind:
When will the selling end? 😭
Mike Novogratz believes he has the answer.
For those who don’t know Novogratz, he’s an extremely successful American investor. So much so, he’s a billionaire.
But the asset he’s most bullish on right now?
Cryptocurrency.
Yesterday, Novogratz replied to a post predicting that the Bitcoin price will continue down over the next few weeks.
Why?
Grayscale has $25 billion dollars of selling pressure.
However, Novogratz disagrees.
He believes this take is missing the forest for the trees.
Moral of the story? Eventually the Grayscale selling will come to an end.
With the Bitcoin halving coming up in 85 days, selling now is highly likely to be a massive blunder.
The Bitcoin ETFs have unlocked continuous passive flows into Bitcoin from the biggest institutions in the world.
Let’s not forget, this is how healthy ETFs grow over time…
Our view remains the same. All dips, at this moment, are gifts. 🎁
WHERE ARE YOU FROM? 🌏
It’s about time we got to know the Crypto Nutshell readers better.
Crypto is a worldwide asset class - where are you from?
Where are you from? 🤔 |
ETF NET OUTFLOWS 💧
Time to dive a little deeper into digital asset fund flows. (globally, not just the US ETFs)
Last week there were minor outflows of $20.8 million. 📉
Whilst there were net outflows, the trading volume was crazy.
$11.8 billion in Bitcoin was traded last week. That’s 7 times the 2023 weekly average. 😲
If you’re new around here, or not quite sure what we mean by digital asset investment products, checkout this short article.
Although the newly launched Bitcoin ETFs experienced net inflows, Grayscale has been a completely different story.
(Grayscale doesn’t technically count as “newly” launched since it converted from a trust)
Take a look at the table below. It’s honestly pretty crazy to look at.
$2.23 billion in outflows…
But it wasn’t just Grayscale that suffered last week.
All issuers with higher fees than BlackRock and Fidelity were impacted.
Which makes sense. Why would investors opt for a more expensive product that does the exact same thing? (plus BlackRock & Fidelity’s reputation)
As expected, there’s been a minor migration of assets to the US.
The US saw net inflows of $263 million.
Whilst Canada and Europe combined experienced net outflows of $297 million.
As mentioned earlier, a large majority of recent sell-side pressure has come from investors selling Grayscale’s GBTC.
But as Mike Novogratz said, we expect most investors will be switching to other US based ETFs.
CRACKING CRYPTO 🥜
Bitcoin ETFs buy 95,000 BTC as assets under management hit $4 billion. The “Newborn Nine” Bitcoin ETFs have collectively amassed 95,000 BTC, with collective assets under management (AUM) nearing $4 billion, according to available data.
Bitcoin price falls to 6-week low under $40K — What’s next for BTC? Bitcoin price falls to a 6-week low under $40,000. Is the bull market over?
FTX’s Alameda dismisses lawsuit against Grayscale. The dismissal, confirmed by a Grayscale spokesperson, ends the injunctive relief originally sought by Alameda Research last March.
WHAT WE’RE READING ✍️
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MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: C) The process of confirming transactions and adding them to the blockchain 🥳
"Mining" is the process of confirming transactions and adding them to the blockchain.
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