The GBTC unlock has created a major buzz in the crypto space over the last week weeks about how it shall affect the price of Bitcoin (BTC). However, it turns out that institutional players continue to have an interest in Grayscale crypto products.
As per the SEC filing on Monday, July 19, Chicago-based institutional player Rothschild Investment reportedly purchased over 100K shares of the Grayscale Bitcoin Trust (GBTC) during the last quarter i.e. Q2 2021. The SEC filing shows that Rothschild holds 141,405 shares of GBTC on June 30, 2021, while the holding was only 38,346 shares by the end of March 2021.
Interestingly this purchase comes in the quarter when the Bitcoin price corrected more than 50%. At press time, Bitcoin (BTC) was 2.78% down trading at a price of $30,623 with a market cap of $579 billion.
Despite BTC constantly trading under pressure, institutional players have continued to buy the dips. As CoinGape reported, Bitcoin whales have been also adding at the current price levels by squeezing more Bitcoins in their wallet.
The SEC filing also goes to show that Rothschild purchased around 15,000 shares of the Grayscale Ethereum Trust (ETHE).
Buying Bitcoin Could Prove Dangerous
Bitcoin (BTC) has been constantly trading under pressure recently. Today, the BTC price has moved dangerously closer to $30,000 falling under which can trigger another major correction. Seasoned investor David Tice, popular for managing the Prudent Bear fund said that it is a “very dangerous period” for investors right now. Speaking to CNBC’s Trading Nation, Tice said:
“We had a bitcoin position when bitcoin was at $10,000. However, when it got to $60,000 we felt like that was long in the tooth… Lately, there’s been a lot more uproar from central bankers, Bank for International Settlements [and] the Bank of England have made profound negative statements. I think it’s very dangerous to hold today.”
Bitcoin has remained volatile in the range between $30K-$35K. Thus, investors should weigh their risks before dipping their toes.