Anthony Scaramucci, founder of Skybridge Capital, says Bitcoin's (BTC) recent correction is likely due to investors selling their holdings in Grayscale Bitcoin Trust (GBTC).
GBTC shares were transferred from a trust to an exchange-traded fund (ETF) after receiving approval from the US Securities and Exchange Commission (SEC) last week.
Scaramucci says his trading desk reported GBTC holders posted losses on their shares in order to hold ETFs with lower fees, Bloomberg Reports.
“There seems to be a lot of grayscale selling.”
The hedge fund manager also says the ownership of former cryptocurrency exchange FTX, which went bankrupt after a dramatic collapse in late 2022, took the opportunity to sell its holdings during the Bitcoin ETF approval hype. Despite the Bitcoin sell-off in the past few days, Scaramucci believes the situation will change in about a week.
“The second thing we're seeing is the FTX bankruptcy being unloaded into the ETF announcement… There's a significant amount of selling in Bitcoin right now. I expect it to be oversupplied over the next six to eight trading days.
One last thing, there was a lull on Wall Street. Wall Street has been unable to market these ETFs and will begin in about eight days.
At the time of writing, Bitcoin is trading at $43,039.
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Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should conduct due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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