According to Anthony Scaramucci, the decline of Bitcoin can be attributed to the actions of Grayscale trust shareholders who began selling the asset following the launch of spot crypto ETFs in the United States.
This news led to a prolonged drawdown in BTC’s price, the longest since December 2020. On Bloomberg TV, Scaramucci explained that the approval of Grayscale’s ETF application by the SEC caused traders to shift their investments to these type of funds, resulting in significant selling of Bitcoin.
The GBTC trust was initially established in 2013 and was recently transformed into an ETF on January 11 with a turnover of $2.3 billion. Despite briefly reaching $49,000 on Thursday, BTC’s price dropped below $43,000 the following day.
The value of GBTC shares also fell 5.2% to $38.58 on Friday. While GBTC saw a 300% increase in value last year, Bitcoin only gained 160% in the same period.
