The Daily Hodl
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

Here’s What Triggered Bitcoin’s 2021 Reversal, According to Macro Investment Strategist Lyn Alden

by Daily Hodl Staff
July 21, 2021
in Bitcoin

Investment strategist Lyn Alden says that she’s looking at a fundamental catalyst that potentially triggered the start of Bitcoin’s trend reversal this year.

In an interview with Angelo Robles, CEO of Family Office Association, Alden explains how institutional investors took advantage of the trading opportunities presented by the Grayscale Bitcoin Trust (GBTC).

“The Grayscale Bitcoin Trust has, for a while, been one of the only publicly traded vehicles that you can access Bitcoin with for investors that prefer to access a brokerage account. Institutional investors could also use it. In addition to people buying Bitcoin through that trust, there’s also a neutral arbitrage trade there … For most of its history because it’s a rather unique vehicle, it traded at a premium to NAV (Net Asset Value). And so what people could do was they could you know buy in at NAV with these six-month lock-up periods…

So for some people, they just were happy to be long that fund, whereas other people did it specifically to collect the premium. And so what they would do was they would get it at NAV, they would short an equal amount of Bitcoin and so they have a neutral position.

And then after the six-month lock-up period, they can sell their GBTC shares, they can undo their Bitcoin short and whatever the premium over NAV is, they get to collect that. They can do it again. They can do it every six months.”

Alden highlights that while institutional investors could sell their GBTC shares, the Bitcoin involved cannot be sold back into the market.

“Bitcoin is not redeemable from that trust so that Bitcoin is permanently in the trust now. It converted liquid Bitcoin from exchanges into illiquid Bitcoin and cold storage. When that was repeated over and over again, it was kind of a ‘Hotel California’ for Bitcoin. GBTC was the largest buyer of Bitcoin in the second half of 2020.”

The prominent investment analyst says that the entry of competitors eroded demand for GBTC, therefore reducing the rate at which BTC gets locked up in cold storage.

“So now with GBTC having competition from the Canadian Bitcoin ETF, from some European exchange-traded products, from easier Skybridge Bitcoin fund, all these other things that are generally cheaper, Grayscale’s now got a discount to NAV. And so that trade is over…

And so basically that biggest buyer is removed from the market. And so when we saw that happen back in say January 2021, Bitcoin started to kind of consolidate for a little while, kind of made new highs but the momentum was kind of weaker.

And then we started to get that Elon concerns, it kind of impacted a market that was already kind of on its sideways consolidation. And so that kind of helped trigger the decline. And so I think that played a role. But I think the more underlying thing was just a supply and demand balance for Bitcoin itself.”

I

Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines


 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/lisima

Submit a Press Release

Industry Announcements

  • Core’s Revolutionary Satoshi Plus Consensus Marries Decentralization, Security and Scalability
    March 30, 2023
  • Lost Worlds Launches Version 2.0 of GeoNFTs in Web 3.0 Platform
    March 30, 2023
  • Script Network, SingularityNET and Stacks Bring Practical Solutions to Real-World Issues
    March 29, 2023
  • OKX To Open Office in Australia
    March 29, 2023
  • Metacade Raises Over $14.7 Million As Presale Sets To Close in 72 Hours
    March 29, 2023
  • Binance Expands AI-Powered NFT Generator Bicasso
    March 28, 2023
  • Open-Source Blockchain D-Ecosystem Raises $6 Million Ahead of IDO on March 29, 2023
    March 27, 2023
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$27,885.47
$27,885.47
1.34%
Ethereum
$1,774.26
$1,774.26
1.48%
Cardano
$0.372538
$0.372538
3.86%
XRP
$0.536301
$0.536301
2.74%
Dogecoin
$0.07421
$0.07421
2.09%

Spotlight

  • One in Three US Crypto Investors Fell Victim to Fraudulent Websites or Investment Scams: Kaspersky Study
    March 28, 2023
  • Nvidia Top Executive Says Crypto Adds Nothing of Value to Society but AI Does: Report
    March 28, 2023
  • Former Goldman Sachs Executive Predicts Three Major Pillars of Power Will Control Future Crypto Industry
    March 28, 2023
  • CFTC ‘Pretty Confident’ in Case Against Binance, Says Chairman Rostin Behnam
    March 28, 2023
NBX Warsaw Summit Banner
DON'T MISS A BEAT
Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options
By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.
Featured Image: Shutterstock/Billion Photos

Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX •
Futuremash •
Industry Announcements

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT | ADVERTISE

JOIN US ON TELEGRAM

JOIN US ON TWITTER

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2023 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX

© 2023 The Daily Hodl