U.S. stocks opened higher and Coinbase's stock price began to rebound year-on-year. Grayscale originally planned to reduce its selling amount today compared with yesterday. However, despite the latest news, Grayscale has currently transferred 19,000 coins to Coinbase, MD, which is more than yesterday.
Tonight, it depends on whether Grayscale’s selling pressure or BlackRock and other institutions are stronger.
There is another important thing to note. The market must face gray selling pressure, and not only face it, but also have to adapt to it for a period of time.
The current share of ETFs, Grayscale accounts for 80%, and the rest are BlackRock and Fidelity. According to our understanding, competition in the same industry, as BlackRock with lower management fees, Fidelity is obviously more competitive in the market. There are advantages.
Then Grayscale’s users will inevitably be lost. We have been saying that this is also a process of changing hands in the market. If the ultimate goal is for BlackRock and Fidelity to occupy 60% of the market share, then Grayscale’s current market share will inevitably change hands in large numbers, so Grayscale selling may become routine in the future, and the market needs to adapt. You must adapt. Of course, once the market adapts and institutions such as BlackRock successfully absorb the daily selling pressure, the market will return to its normal operating space.
Therefore, there is no need to be too pessimistic about the current market decline, whether it is a correction or gray selling pressure.