With the 2nd quarter of 2021 nearly done and July just around the corner, bitcoin may be headed towards an extremely unstable month, and Grayscale might receive the blame. This is due to the fact that among the largest unlockings from GBTC will occur in the middle of the month as certified investors will receive access to over $600 million worth of BTC.
Volatility in July Because of GBTC Unlocking?
Established in 2013, Grayscale is the leading digital property supervisor making it possible for institutional investors to get direct exposure to BTC, and other cryptocurrencies, through its funds without having to worry about keeping and managing their holdings.
In return, they consent to pay a specific commission and to follow accurate guidelines. Among which dictates that their Bitcoin holdings will be locked for 6 months. Meaning, once they acquire GBTC shares, they would have to wait half a year prior to receiving the opportunity to realize gains.
With Grayscale’s appeal blossoming in late 2020 and early 2021, many accredited investors utilized the company’s products to purchase shares, tracking the performance of the main cryptocurrency.
Consequently, a few of them had their properties unlocked simply recently, however the most significant quantity will come on July 18th.
As Bybt’s graph demonstrates, Grayscale customers will receive the equivalent of over 16,000 bitcoins on that date. With today’s USD prices, this large quantity represents almost $650 million.