Lets talk a little about last BTC price movements. I think everyone heard about Grayscale. So, who are they, what happened and how it effected BTC. This is a long discussion, so I ve decided to divide it in several posts. First of all, I ll tell what is Grayscale. Grayscale has been operating for over 10 years. In the past, Barry Silbert transformed Bitcoin into a product that appealed to large investors in the financial market.
They sold shares of the Grayscale Bitcoin Trust (GBTC), which was suitable for companies that wanted to invest in Bitcoin but couldn't do so for various reasons. Later, they introduced trusts for ETH, LTC, and ZEC.
From 2014 to 2021, Grayscale shares traded at a premium to Bitcoin, which served as their underlying asset. If the price of Bitcoin increased, the price of GBTC shares followed suit. Their main profit came from high fees (compared to ETF market standards).
In the long term, they wanted to wait for the development of regulatory frameworks for cryptocurrencies in the United States before offering Bitcoin to a much wider range of investors in the form of exchange-traded fund (ETF) shares.
In the next posts I ll explain the legal part of their case, and then my opinion about BTC price movements, caused by this case and explain my rating. Show Less