In a recent tweet, cryptocurrency enthusiast Mike Novogratz shared his perspective on the potential impact of Grayscale’s decision to maintain a 1.5% fee on its Bitcoin Trust (GBTC). The CEO of Galaxy Digital disagrees with the idea that the GBTC liquidation, which could result in around $25 billion in sales over the next few weeks, will negatively affect the price of Bitcoin.
Novogratz does not lose hope on bitcoin
“ I do not agree. I think people will sell GBTC, but most of them will turn to other ETFs – $BTCO being my favorite!
You shouldn’t see the forest through the trees. It will now be much easier for baby boomers to buy corn. And you can get 4x5x leverage on this $BTC exposure. This indigestion will end and $BTC will be higher in 6 months. »
Novogratz predicts that while some may sell GBTC, many will move to other Exchange Traded Funds (ETFs), with Invesco’s BTCO ETF being his favorite. He emphasizes that amid the current turbulence, it will be easier for older generations to invest in Bitcoin. In addition, the CEO of Galaxy Digital highlights the possibility for investors to benefit from a leverage effect of 4×5 on their exposure to BTC.
Unlike Mike Novogratz, Chris J Terry suggests that the price of Bitcoin could remain stable or experience a decline until the end of the GBTC liquidation. He criticizes Grayscale’s decision to maintain a 1.5% commissioncalling it a major strategic mistake in crypto history, driven by greed.
Taking into account the information provided in this article from Coingapeit becomes clear that the CEO of Grayscale defends the 1.5% commission, challenging Bitcoin ETF rivals. Amid approvals from the Securities and Exchange Commission (SEC), Grayscale remains firm on its fee structure, sparking varied opinions within the crypto community.
A bitcoin bull run in 6 months?
Mike Novogratz’s optimism about the future of Bitcoin, despite current challenges with GBTC, aligns with his belief that the queen of cryptocurrencies will experience higher prices over the next six months. As the crypto industry undergoes regulatory changes and developments, Novogratz’s outlook provides valuable perspective for investors navigating this evolving landscape.
Despite the success of Bitcoin ETFs, BTC/USD is stagnating, in part due to outflows from the GBTC ETF. Clients prefer new ETFs with lower management fees, leading to massive sell-offs. Currently, almost 89% of the BTC backed by Bitcoin Spot ETFs is held by Grayscale. Sales are likely to persist as Grayscale avoids adjusting its fees.
Market dynamics will depend on the balance between funds flowing into the new ETFs and outflows from the GBTC ETF. A rapid reversal of GBTC customers would favor the rise of BTC/USD.
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