I’m listening to the August 29th nostr:npub1tftc33ttam85wraffce62cgtvvjrmttquqlv6a0agtfm5nl4vues82xar5 Signal podcast and I’m trying to wrap my head around how whales rotating part or all of their stack from spot Bitcoin into a proxy like IBIT isn’t a net neutral effect on the price. I can understand if there’s a delayed dip followed by recovery as coins are sold, funds clear, the proxy is purchased, and the presumably backing bitcoin is bought for the proxy, but isn’t this essentially a wash in the end?

I could also understand the immediate psychological effects of the price dip leading to more selling/liquidations and further downward price pressure, or rotating from spot Bitcoin into a different asset altogether pushing price lower, but is there something else am I missing there? I assume I’m wrong but I need someone smarter to help me (and anyone else wondering the same) understand why.