Anthony Scaramucci, founder of Skybridge Capital, says Bitcoin (BTC)'s recent correction is likely due to investors selling their shares in the Grayscale Bitcoin Trust (GBTC).
GBTC shares were converted from a trust into an exchange traded fund (ETF) after receiving approval from the US Securities and Exchange Commission (SEC) last week.
According to Bloomberg, Scaramucci reported that his trading desk reported that GBTC holders booked losses on their shares in order to hold ETFs with lower fees.
“Grayscale seems to sell a lot.”
The hedge fund manager also says that the estate of former crypto exchange FTX, which went bankrupt after a dramatic collapse in late 2022, seized the opportunity to sell its holdings during the Bitcoin ETF approval hype. Although BTC has been experiencing a sell-off over the past few days, Scaramucci expects the situation to change in about a week.
“The second thing we see is FTX’s bankruptcy estate unloading in the ETF announcement… There is a lot of selling volume in Bitcoin right now. I expect the supply overhang to be resolved in the next six to eight trading days…
One last thing: There was a quiet time on Wall Street. Wall Street has been unable to market these ETFs and will begin to do so in about eight days.”
At the time of writing, Bitcoin is trading at $43,039.
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