Kraken Disputes JP Morgan’s Grayscale Write Down

Kraken Further Disputes JPMorgan’s Assessment of the Upcoming Grayscale Bitcoin Trust Unlocks

Crypto exchange network, Kraken, has become a part of the team of analysts that believes that the new Grayscale Bitcoin Trust (GBTC) shares reaching secondary markets is a positive thing for bitcoin prices.

The Grayscale Bitcoin Trust is ranked one of the world’s biggest digital currency investment products.

It gives institutional investors exposure to bitcoin via the trust’s shares. This trust is estimated to be holding 654,600 BTC. This accounts for about 3% of the digital currency’s total supply.

The investors have the ability to make purchases through the fund, using its net asset value. The net asset value is equivalent to the value of the underlying bitcoin.

However, they can only do so on one condition, that is the fact that they’re limited to a lockup phase lasting 6 months.

At the beginning of the year, a lot of investors decided to buy into the trust fund. We’re halfway through the year, which means the majority of these lockups are just reaching their expiration date.

Once this happens, GBTC holders will have an opportunity to trade their shares on the secondary market.

Based on a report released by JPMorgan, the ongoing expirations and subsequent unlocks might lead to a sharp decline in bitcoin prices.

However, some crypto analysts including Arca Funds and Amber Group believe that the opposite is true, that is, the unlockings will cause an appreciation in bitcoin prices.

Kraken’s most recent report indicates that nearly 40,000 BTC worth of GBTC shares will be unlocked in the course of this month. This totals to almost $1.36 billion, based on bitcoin’s present price of $34,000.

In Kraken’s analysis, the firm believes that the unlock won’t have as significant of an impact on BTC spot markets.  

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