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Grayscale Expected to Trigger Next Bitcoin Bull Run as GBTC Shares Unlock

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by Ibukun Ogundare · 3 min read
Grayscale Expected to Trigger Next Bitcoin Bull Run as GBTC Shares Unlock
Photo: Depositphotos

With the increasing interest in Bitcoin and altcoins among institutional investors, Grayscale has been expanding its offerings.

Grayscale may trigger the next Bitcoin bull run as Grayscale Bitcoin Trust (GBTC) shares that have been subjected to customary lock-up are set to unlock on the 3rd of February. Before now, technology magazine Hackernoon had explained that Bitcoin price may surge once GBTC shares are released. The reason behind the surge will be customers reinvesting their profits into BTC, especially as BTC price has dropped from its record high over the past weeks.

Grayscale Bitcoin Trust Shares Unlock

According to a Cointelegraph report, Grayscale is one of the factors behind the recent fall in the price of Bitcoin. However, the king coin is about to pull in increases as Grayscale Bitcoin Trust is about to unlock its shares.

Hackernoon noted:

“What’s important to know is once these higher prices and premiums are realized after an unlocking, price goes on to consolidate. This lets the premium shrink again before its next unlocking event… This enables premiums to shrink again like the nine times before. And it’ll keep shrinking until the next unlocking. Because of this I expect price to either consolidate or sag.”

At the time of writing Bitcoin, Bitcoin is up $8.44% to $36,703.27. Recent predictions stated that the king coin would continue to increase to reach $40,000.

As of the 1st of February, Grayscale had $21.8 billion in assets under management (AUM).

With the increasing interest in Bitcoin and altcoins among institutional investors, Grayscale has been expanding its offerings. Over time, institutional investors have continually invested in Bitcoin and other crypto-assets.

Institutional Investors Not Relenting on BTC

With the increasing BTC interest among institutional investors, Nasdaq- listed company MicroStrategy Inc (NASDAQ: MSTR) recently bought an additional 295 BTC. According to the company’s announcement, the most recent BTC purchase was completed on the 2nd of February and is worth $10 million.

MicroStrategy began its BTC acquisition in August 2020 when it bought 21,454 BTC worth $250 million at the time. Since then, the company has continually invested in Bitcoin as part of its treasury reserve policy.

Before the most recent BTC acquisition on the 2nd of February, MicroStrategy added 314 BTC to its portfolio on the 22nd of January. The company said the purchase was worth $10 million, pushing its total BTC holdings to 70,784 Bitcoins.

With the latest purchase, MicroStrategy now holds a total of 71,079 BTC. In the announcement, MicroStrategy revealed that the 295 Bitcoin were purchased at an average price of about $33,810 per BTC, fees, and expenses inclusive.

Notably, MicroStrategy CEO Michael Saylor had earlier said that the company had plans to continually buy Bitcoins. In MicroStrategy’s financial report for 2020 Q4, Saylor said MicroStrategy would continue to hold the top digital currency and explore other approaches that would help grow its Bitcoin holdings. Specifically, he referred to Bitcoin as its “overall corporate strategy.”

Bitcoin News, Blockchain News, Cryptocurrency news, News
Ibukun Ogundare

Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.

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