FTX Unloads $1 Billion GBTC Shares; Will The Bitcoin Rally Be “Vicious”?

Dalmas Ngetich

Last Updated: June 11, 2024 2:44 pm

2 mins read

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Fred Krueger, an investor and crypto analyst, is predicting a “vicious” Bitcoin (BTC) rally shortly. He cites the recent unprecedented accumulation of the coin by Wall Street heavyweights.

This surge in institutional interest coincides with the recent approval of the first spot Bitcoin ETFs by the United States Securities and Exchange Commission (SEC).

Wall Street Ramping Up Bitcoin Purchase

In a post on X, Krueger pointed to the substantial Bitcoin purchases by major financial institutions, including Fidelity Investments, BlackRock, and Ark Invest. To illustrate, the analyst noted that Fidelity was buying approximately 4,000 BTC every day.

On the other hand, Ark, Krueger continues, has been gobbling upwards of 1,500 BTC daily. BlackRock, the world’s largest asset manager, has yet to release its Bitcoin holdings. However, based on the pace of Ark Invest and Fidelity Investment’s accumulation rate, BlackRock is likely buying coins at a faster pace. So far, Lookonchain data places BlackRock’s IBIT holdings of BTC at over 44,000.

ETF funds buying BTC | Source: Lookonchain

If anything, the rate at which these Wall Street institutions are doubling down on Bitcoin is a net bullish for price. Notably, BTC demands remain high more than a week after the United States SEC authorized the first spot of Bitcoin ETFs. That they are steadily buying suggests that institutions are bullish about Bitcoin’s potential.

The heightened pace of BTC accumulation is less than three months before the network halves its miner rewards. The Bitcoin halving event in early April will reduce miner rewards from 6.25 BTC to 3.125 BTC. If past price performance guides, the resulting supply shock might trigger another wave of higher highs, even lifting prices above 2021’s peaks of $69,000.

BTC Falls, FTX Unloads Millions Of GBTC Shares

Even amid the overall optimism, BTC is still struggling. Days after the approval of spot Bitcoin ETFs, BTC has been trending lower, shedding double digits. It even temporarily fell below $40,000 on January 23 before recovering to spot rates.

Bitcoin price trending downward on the daily chart | Source: BTCUSDT on Binance, TradingView

Analysts pin the sell-off to FTX, the defunct crypto exchange, off-loading an estimated $1 billion of Grayscale Bitcoin Trust (GBTC). With the FTX estate selling their stake in GBTC, prices are expected to stabilize as the unique selling event is alleviated and institutions double down, buying more BTC at spot rates.

Observers also note that GBTC outflows were matched or surpassed by the spike in inflow to other funds, mostly BlackRock’s ETF product.

Feature image from Canva, chart from TradingView

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.

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