Crypto Bulls Lose $217 mn; Grayscale Sales Weighs On Bitcoin
Futures traders have seen $217 million in liquidations in the past 24 hours due to the approval of spot bitcoin ETFs. Fears of Grayscale selling its bitcoin holdings, as part of its holders selling GBTC ETF shares, contributed to a drop in prices.
The fund moved over $400 million worth of bitcoin to custodian Coinbase Prime, likely in preparation for an eventual sale. Analysts also noted that GBTC shares flipped to a 0.9% discount on Thursday amid “likely selling pressure.”
However, as BlackRock’s IBIT crossed $1 billion in assets under management on Wednesday, other ETFs are likely absorbing most of these sales. Liquidation occurs when an exchange forcefully closes a trader’s leveraged position due to a partial or total loss of the trader’s initial margin.
(With inputs from Shikha Singh)
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