Topic: How long before Greyscale start dumping? (Read 146 times)

You all aren't understanding what Grayscale is. There is no dumping. Investors (mostly institutional) give them money and they use that money to buy Bitcoin, and they give shares to the investor, with the price of the shares backed by the price of bitcoin, so they get access to Bitcoin price movements, but the investors don't actually get the Bitcoin, so there is no bitcoin to dump. Grayscale holds all the Bitcoin, and they sell a little bit to pay for costs of running the company.

The question "how long before Grayscale starts dumping" doesn't make sense because of this. As long as Grayscale is running this business they won't be selling anything beyond the cost of running the business which they already do on a daily basis and is very tiny compared to what they are buying on behalf of their investors. When investors in Grayscale sell they aren't selling Bitcoin, they are selling Grayscale shares on the open market. Grayscale acts as an accumulate-only fund - they buy but they don't sell. So no they won't be selling anything at some certain price. As long as their business is profitable (as long as institutions and accredited investors are buying Bitcoin) they will not ever be dumping. It's like asking when will Netflix stop making new shows/movies. They won't, as long as their business continues.

Highly unlikely an investment trust like this would dump, as the owners will be making their money either way.

Actually, just looking at the premium (price of company vs the actual amount of Bitcoin owned), it seems quite low, obviously in accordance with the Bitcoin dip.

If I had the cash, I'd be buying Grayscale right now instead of Bitcoin as investments trusts dip even lower than their assets, but bounce back even higher so you can take extra profit.

1.5% actually.

You mean locking up all those coins for a year or two is good?

Should it be "How much will they be buying when the price is this low again?"

With a positive reaction from investors, they will try to hoard as much as they could get.
Dumping is not an option if money keeps on coming.
They will just spin it without the need to create panic. Also, there might be an agreement before they can pull out.

I don't think that Greyscale will start dumping anytime soon because the price will drop to $20k in no time when they begin. Such a drop will depreciate the whole company's value and it's not worth the risk.

I don't think they will dump that easy because for me an institutional investor has long term plans for a much bigger achievement or return. It could be that they have set target but the thing is they play big so they win big that's the logic that is why they don't just dump so fast.

I agree, the scale of the orders now that BTC has gone up several folds is higher than ever before. In this case, millions are needed to swing the market in one direct or another.

As for Grayscale, well, now is probably a good time to buy before it bounces up even higher. I do not see it going down any time soon.

This has been a question in my mind for some time, if Grayscale holds so many bitcoins and keep buying it over time, when they will sell it or whether they will take profits after the price hit the ath, but it may be the case as Grayscale offer bitcoin trust (GBTC).
GBTC is a trust that only holds Bitcoin. Grayscale Bitcoin Trust tracks the Bitcoin price based on the TradeBlock XBX Index. But while the trust closely mirrors the performance of Bitcoin, the GBTC stock price tends to over- or undershoot performance based on investor sentiment. source
So, I bet they will sell bitcoin if investors start selling their 'trust' which is at the peak of bitcoin price such as when bitcoin hit $42k and the sell-off occur caused bitcoin to fell 27%.

With the amount of leverage and power they currently have in the market, I doubt they will let go of that any time soon. Institutional investors are also trying to get in to the market so it's safe to say that they will hold on for this strong position for a long time. Like any other bulls out there, they believe that this market is capable for reaching higher highs, that's why it's just wise to invest and forget, and buy more if the price is right. This is just smart investing done right on their part, and they don't want to lose their bags this early knowing that the potential for a fruitful harvest is too large.

How long are they holding the BTC?
Most importantly, we don't know what Grayscale exactly is and that’s where we are confused. Grayscale holding bitcoin, the source of money is their investors and the investors aren't directly investing in bitcoin. They are investing in the share of Grayscale bitcoin fund.
Therefore, selling bitcoin for Grayscale for profit isn’t something important I guess (I might be wrong in this though).

I don't think this company will be dumping anytime soon. Their contracts with their clients I believe, is not only for few days. That they can pull out anytime. I don't think that's the case here. I maybe wrong, but does anyone here who is at least an investor on Greyscale and know how are things arranged with them when it comes to your financial portfolio?

they have been buying bitcoin so much because their users are demanding to buy bitcoin more every day. on days like this where the FUD is real active and the price drops a little we see them buy even more amount of bitcoin because they want cheaper coins not after price went to the moon.


congratulations you just saw a 1% price change

It's the other way around, it's very good for the ecosystem. If those institutions weren't buying we wouldn't have crossed $20k and without those institutions we won't reach $100k or $500k.

Those swings you are referring to are quite normal in terms of percentage as fas as Bitcoin is concerned but as the price is higher it's more shocking because you see more money moving up and down.

As for Grayscale and others I don't think they are going to sell before the price is much higher. They are going to hold a long time.

This is new territory, people buying that much that quickly.  It cannot be good for the eco system.  I just watched the price go down $500 in about 10 minutes.  That probably wiped a few million off their value.  How low will it go before they give in?