- The Twitter crypto sphere is abuzz again about the upcoming GBTC unlock.
- A Twitter user claims that the unlock will fail because Grayscale cannot sell BTC.
- Another user clears the air and says there is no such issue.
The crypto Twitter community went abuzz this morning as a Twitter user declares the upcoming Grayscale GBTC unlock FUD dead. Specifically, the user says that Grayscale does not have the authority to sell any BTC.
The user — LilMoonLambo, makes this statement on their Twitter page. LilMoonLambo is a Bitcoin and crypto investor, trader, and NFT creator. Accompanying the statement was a screenshot of Grayscale’s Investment Terms for the FUD.
In particular, the screenshot mentions a few important details about the FUD. For instance, it says that the BTC Holdings per Share ($) will be calculated and displayed on business days at 4 PM New York time.
Moreover, it also talks about Secondary Market Trading. Here, it says that following a six-month holding period, shares will be eligible and will no longer be restricted. Also, investors can choose to resell their crypto in the public market if they so choose to.
Next, is the Redemption category which LilMoonLambo highlights on their Twitter post. Specifically, this part says that Redemptions of shares are, at the moment, not authorized. This is what seems to be of concern.
Noting that the funds are yet to be given the green light makes it seem that Grayscale cannot give away BTC in the eyes of this user. Chiming in the comments is another Twitter user who shares Grayscale’s product page on their website.
This user believes that if the firm unlocks their investment now, then they could be facing some issues. So far, this page showcases the firm’s investment Trusts, which, at the time of writing, are all showing downward signs.
In contrast to this line of conversation, another Twitter user chimed in declaring that the tweet made no sense. He says that Redemptions happen when the company buys back shares from investors. Not when they sell. Hence, this was never an issue.
He concludes by saying that what is happening now is simply the unlock of the GBTC that was put away about 6 months ago. The unlock will happen on July 18, 2021. Perhaps the biggest concern is if the investors choose to HODL or sell the Bitcoin they will access after the unlock, and if the whole ordeal will in any way affect the price of Bitcoin.
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