On June 16, Grayscale Investments’ bitcoin trust (GBTC) quotes fell NAV exceeded 34%. IN Arcane Research explained the dynamics of the problems of Three Arrows Capital (3AC).
Experts referred to Bloomberg data, according to which 3AC was the largest holder of GBTC (38.9 million shares). In the background liquidity problems the firm considered including the option of selling assets.
Hedge fund raises positions in bitcoin trust, hoping to make money on eliminating discounts ahead of July 6 verdict SEC at Grayscale’s suggestion to convert GBTC to ETF. To do this, the company bought trust shares and opened shorts on the first cryptocurrency.
On June 29, pending a decision on Grayscale’s application, the Commission will respond to Bitwise’s announcement to launch a spot bitcoin ETF. In the company are cautiously optimistic in this regard.
Analysts stressed that the resulting discount to NAV in GBTC seems unjustified. Taking into account the management fee of 2% per year, the market “does not see” the conversion of a closed trust into an exchange fund for the next 17 years. Experts consider this scenario unlikely.
Arcane Research considered the possible SEC approval of the spot bitcoin ETF to be a bearish factor. They explained this by the potential opening of shorts on the first cryptocurrency by arbitrators.
Recall, CEO of Grayscale Investments Michael Sonnenstein called On the positive side, the launch with the consent of the regulator of the reverse exchange bitcoin fund, which allows you to open short positions in digital gold.
Earlier, the top manager admitted the opportunity filing a lawsuit against the SEC in case of refusal to register the GBTC trust as a spot bitcoin ETF.
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