The well-known Bitcoin critic and gold advocate, Peter Schiff, states that The Grayscale Bitcoin trust was one of the main reasons the first cryptocurrency rallied to almost $70K. He also added about a particular scheme used by the institutional investor.
It can be seen that Grayscale was able to raise more capital that it successfully used to buy as much Bitcoin on the market as possible. But, unfortunately this played a cruel joke on GBTC holders. And Grayscale’s discount on NAV has been recently crashing to unseen values, reaching 43% at the bottom.
Mr. Schiff also noted that “It advertised on CNBC to get retail investors to pay huge premiums to NAV. Then it issued new shares to institutions at NAV, using the proceeds to buy more Bitcoin, pushing the price even higher.”
In a recent event of Dubai Multi Commodities Centre (DMCC,) the global financial expert, PeterSchiff, shared valuable insights on the ever-changing nature of crypto, blockchain and precious metals trade in the current market conditions.
Source: https://www.thecoinrepublic.com/2022/11/23/this-famous-bitcoin-critic-said-grayscale-pushed-btc-price/