Skybridge Capital founder Anthony Scaramucci says that Bitcoin’s (BTC) recent correction is likely due to investors selling off their holdings in Grayscale Bitcoin Trust (GBTC).
Shares of GBTC were converted from a trust into an exchange-traded fund (ETF) after receiving approval from the U.S. Securities and Exchange Commission (SEC) last week.
Scaramucci says that his trading desk reported that GBTC holders booked losses on their shares in order to hold ETFs with lower fees, Bloomberg reports.
“There seems to be of lot of selling of Grayscale.”
The hedge fund manager also says that the estate of former crypto exchange FTX, which went bankrupt after a dramatic collapse in late 2022, took the opportunity to sell off its holdings during the hype of the Bitcoin ETF approval. Although BTC has been selling off in the last few days, Scaramucci thinks that the situation will change in about a week’s time.
“The second thing we are seeing is the bankruptcy estate of FTX is unloading into the ETF announcement… There is a heavy volume of selling in Bitcoin right now. I do expect the supply overhang to be done in the next six to eight trading days…
One last thing, there has been a quiet period for Wall Street. Wall Street has not been able to market these ETFs and that will start in about eight days as well.”
At time of writing, Bitcoin is trading for $43,039.
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