Peter Schiff, CEO of Euro Pacific Capital, known as the gold defender; He expressed his theory of Grayscale on Twitter.
Schiff claims that Bitcoin whales are emptying their money to ‘GBTC speculators’, which are likely to sell their shares, which he notes as a move to lower the price of Bitcoin.
According to Schiff, the transition from strong hands to weak hands means the bear market.
GBTC in decline
The Grayscale Bitcoin Trust recently added another 19,879 BTC (close to $ 182 million at the time of writing).
The increasing corporate demand, which was seen with the asset management firm buying Bitcoin three times faster than the release of new coins, was perceived as a high bull sign.
However, as Grayscale’s Ethereum Trust (ETHE) shares fell 65% from the summit, Schiff expects GBTC to experience the same situation.
According to crypto research firm Messari, goods investments (in kind) account for 80% of GBTC total assets, which means that investors looking for arbitrage borrowed BTC and sold their shares after the six-month period ended to make a profit.
The rate of in-kind contributions was 79% in the third quarter of 2019, but Grayscale did not explain it in other reports.