Coindesk Logo

One of Bitcoin's Big Funds is Selling Ahead of the ETF Decision

One of Bitcoin's Big Funds is Selling Ahead of the ETF Decision

One of Bitcoin's Big Funds is Selling Ahead of the ETF Decision

At least one major hedge fund is selling bitcoin ahead of the SEC's expected ruling on a long-proposed bitcoin ETF.

At least one major hedge fund is selling bitcoin ahead of the SEC's expected ruling on a long-proposed bitcoin ETF.

At least one major hedge fund is selling bitcoin ahead of the SEC's expected ruling on a long-proposed bitcoin ETF.

AccessTimeIconMar 8, 2017, 5:41 AM
Updated Aug 18, 2021, 5:53 PM

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

While bitcoin prices have edged up sharply ahead of the SEC's upcoming decision on the long-in-the-works Winklevoss Bitcoin ETF, at least one major hedge fund is selling off into the rally.

In an email sent today to its mailing list, Global Advisors Bitcoin Investment Fund (GABI), a Jersey-based investment vehicle that buys and sells bitcoin on behalf of investors, said it believes the market is now signaling a potential approval too strongly for its taste.

Ultimately, GABI said it believes "it does not seem likely" that investors Cameron and Tyler Winklevoss will receive approval for the vehicle, which they first filed in 2013.

GABI wrote in an email today:

"Without the ETF launch, should that be the case after that deadline, and with the aforementioned issues in China, we believe the market will be short of a catalyst and will have trapped some overly optimistic long positions. We will continue to reduce our exposure into the decision date."

GABI goes on to write that it projects a 25% chance of approval on the decision. Either way, sources tell CoinDesk a decision is likely to happen this week.

"If it turns out we are wrong, and the ETF does launch, we will certainly miss a spike and will extend this month's underperformance into next," the statement continues.

However, even if the ETF does not launch, GABI is optimistic bitcoin's price will head higher – even with continued scrutiny on the market from China's central bank.

"We think the ‘bull’ case for bitcoin will be considerably strengthened, and as such, we would expect a very protracted rally in which we will quickly seek to participate," the email reads.

Elsewhere, the firm discussed the results of trading decisions earlier in the year, highlighting how its performance has been affected by developments in China, and how it has shifted its strategy in response.

Launched in 2014, GABI received regulatory approval for its offering from the Jersey Financial Services Commission (JFSC). Principles for the fund include Jean-Marie Mognetti, Daniel Masters and Russell Newton.

Read the full note here.

Injured bear image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.