Institutional Bitcoin [BTC] investors are within the spotlight as an upcoming leading cashout date sparks talk about fresh price volatility.
As revealed by popular Twitter commentator Loomdart as well as others earlier this week, attention is now focusing on purchasers and sellers of the GBTC [Grayscale Bitcoin Trust] as Bitcoin hovers near $40k.
A giant within the institutional Bitcoin space, GBTC has over $24 Bln in AUM [Assets Under Management].
It is not available constantly – as reported earlier, the trust operates with periodic closures, which this year have coincided with its buy-in price trading at a reduction to identify price.
This negative “GBTC premium” has formed a serious point in its title, as investment funds are locked up for a group period then released, permitting investors to live at certain times counting on once they bought in.
A combination of negative premium relative to identify and an outsized unlocking of funds means July will be particularly interesting for BTC price action. Previously, such an alignment has meant increased volatility.
Later on, 19th July will see the most important single unlocking day, with 16,000 BTC [$627 Mln] released.
For popular pseudonymous trader Loomdart, this nonetheless provides an opportunity for selling pressure to stabilize afterward, paving the way for BTC bulls to crush longstanding resistance lines.
This would form a refreshing counterpoint to the broadly bearish picture on institutional markets, with open interest in Bitcoin futures way down vs prior to the May price dip to $30k.
On-chain analytics resource CryptoQuant revealed that the decline in interest last week, something which, in turn, came in tandem with a dramatic decline in overall BTC transaction numbers.