Anthony Scaramucci Attributes Bitcoin Correction to Grayscale Bitcoin Trust Sell-Off

According to Anthony Scaramucci, the founder of Skybridge Capital, investors selling their interests in Grayscale Bitcoin Trust (GBTC) is probably the cause of the current decline in the price of Bitcoin. This follows the conversion of GBTC from a trust to an exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission’s (SEC) clearance.

According to information provided by Scaramucci from his trading desk, investors in GBTC chose to record losses on their shares in order to shift their money to ETFs that had lower fees. There was a surge in selling activity when the ETF format replaced the conventional trust structure.

“There seems to be a lot of selling of Grayscale.”

FTX Estate Capitalizes on Bitcoin ETF Hype

Scaramucci emphasizes the participation of the estate of the now-defunct cryptocurrency exchange FTX, which heightens the situation. The estate sold off its shares at the right time, during the rush of approvals for Bitcoin ETFs rally. Although there has been a sell-off in Bitcoin in recent days, Scaramucci believes that things will turn around within the next week.

“The second thing we are seeing is the bankruptcy estate of FTX is unloading into the ETF announcement… There is a heavy volume of selling in Bitcoin right now. I do expect the supply overhang to be done in the next six to eight trading days…

One last thing, there has been a quiet period for Wall Street. Wall Street has not been able to market these ETFs and that will start in about eight days as well.”

As of the reporting period, the price of Bitcoin is $42,548. Scaramucci is bullish about a bounce back in the Bitcoin market despite the recent drop, highlighting the impact of certain events like the end of the FTX estate sell-off and the start of Wall Street marketing campaigns for ETFs.