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After Bitcoin fell to the level of $ 20 thousand … the index of the “Grayscale Bitcoin Trust” fund reached its lowest levels

After Bitcoin fell to the level of $ 20 thousand … the index of the “Grayscale Bitcoin Trust” fund reached its lowest levels

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Answer After Bitcoin fell to the level of $ 20 thousand … the index of the “Grayscale Bitcoin Trust” fund reached its lowest levels

Bitcoin continues its negative performance, reaching the level of 20 thousand dollars, after the decisions of the Federal Reserve to raise interest rates, the rise in the DXY dollar index, and other factors that made investors resort to less risky and volatile assets.

The surrounding economic conditions negatively affected the cryptocurrency market as a whole, as institutional demand fell to its lowest levels, which is also evident in the decline in the value of the “Grayscale Bitcoin Trust” index.

GBTC Fund Index Reaches its Lowest Levels:

The Grayscale Bitcoin Trust, which stands for GBTC, an investment vehicle provided by asset management company Grayscale Investments, is trading at a drop of 33.71% of NAV, a record low.

Read:How did Binance manage to maintain profits despite the market downturn?

This essentially depicts desperate market players trying to unwind their exposure to Bitcoin as the cryptocurrency struggles to stay above the $20,000 level.

Bitcoin price failed to secure meaningful momentum after a turbulent month depicting that the dark days for the larger cryptocurrency could continue for a long time.

The bearish chaos continued to engulf the market, sending shock waves throughout the market.

The result is losses in several Bitcoin derivatives, including the “Grayscale Trust” Bitcoin products.

The losses even exceeded the derivatives of alternative digital currencies, where, according to data collected by the “platform”CoinglassGrayscale Ethereum Trust (EETH) shares are trading down more than 34%.

In addition to Bitcoin and Ethereum, Litecoin and Ethereum Classic fund indices suffer from a similar situation.

It is also worth noting that Grayscale has an imminent deadline for requesting the SEC to trade the spot Bitcoin ETF on the exchange.

The deadline for a decision by the SEC is expected to be 6 July.

Institutions collectively migrate towards less volatile assets:

Grayscale entered 2021 with $20 billion in assets under management (AUM).

Read:Now it is possible to integrate the VeChain blockchain with games

The reason why the crypto fund manager achieved this feat was due to the massive rise in the price of Bitcoin.

In the following months, Grayscale’s assets under management climbed to more than $50 billion.

But as the market slowed, the value of assets under management declined, and many institutional investors pulled out.

Currently, Grayscale has about $13.3 billion in assets under management.

Institutional withdrawal is driven by Federal Reserve decisions as well as weak risk appetite.

Read also:

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