Replying to Avatar FTB

Good morning.

What’s to stop tradfi institutions from naked shorting GBTC to force outflows and free up coins while staying delta neutral by going long a different etf?

No one talking about this, but I’m pretty sure it’s happening. AlthoughI wouldn’t be surprised if I have some details wrong. I do not buy that this is all bankruptcy liquidations or individuals rotating to lower fee etfs.

Outflows are nearly a perfect match to Blackrock inflows every day.
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Arceris 1y ago

It’s worse than that. They could construct a hedged short. Sell the GBTC, then buy the other ETFs (or raw BTC). Then they’re market neutral but still putting pressure on GBTC. Can go much bigger on that?

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FTB 1y ago

Yeah exactly. I think that Blackrock (or maybe it’s the AP’s?) is intentionally killing Grayscale. Freeing up the coins, shorting it to oblivion, only letting the price go up so fast.