Bitcoin investment vehicle known as the Grayscale Bitcoin Trust (GBTC) has completed its share unlockings this week, ending a major debate both inside and outside the crypto world. What was previously a massive bearish narrative exited through the tradesman’s entrance after failing to have any considerable impact on Bitcoin markets.
Bybt data confirms that as of August 26, no more unlockings are scheduled. Bitcoin seems to shrug off another FUD narrative. Unlocking the events at GBTC has continued throughout the year, and at some point formed the integral point for bearish bitcoin price projections.
With the equivalent of the tens of thousands of Bitcoin released at a time, some feared that the selling pressure would explode, sending the sentiment tumbling. That never happened but there was little logic in the fear from the outset, as Grayscale itself does not let clients cash in shares for Bitcoin.
August 26, 2021, the final unlocking date, featured the equivalent of only 58 BTC. The biggest single date, July 18, by contrast, involved 16,240 Bitcoin.
In that context, the bearish narrative around Grayscale withered out with a whimper instead of a bang. The next series of unlockings is not scheduled until 2022. Statistician Willy Woo said in July:
“Remember when all the traditional analysts said the Grayscale unlock would unleash billions in selling this last week? Yeah, no.”
When he commented, it was already clear that the market was not being impacted by the events.
Morgan Stanley Bets Massive On GBTC
The culmination now comes as data shows that traditional banking giant Morgan Stanley has joined those who have a significant GBTC investment. In the filings with the United States Securities and Exchange Commission (SEC) earlier this week, the bank reported more than 928,000 GBTC shares were owned by its Insight Fund only.
It joins fellow bank JPMorgan Chase, together with the famously pro-Bitcoin ARK Invest as the recent buyers. GBTC continues to trade at a discount to the Bitcoin spot price, with its shares being 13.3% cheaper as of August 26, 2021.