Grayscale Bitcoin Trust to Convert to an ETF, Premium Remains Negative: What’...
Earlier this Monday, Grayscale Investments announced its plans to transform Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund. Up until recently, GBTC was one of the only investment funds for institutions and retail investors alike. Amidst growing competition, however, the fund’s high management fees and stringent lock-up periods lost favor with many investors. Since February, GBTC had continued to trade at a negative premium — meaning that the fund was trading below the price of […]
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Since trading at a negative for nearly 2 months, GrayScale Bitcoin Trust (GBTC) premium plummeted to -14.21% this morning. Historically, GBTC has traded at a high premium relative to the underlying Bitcoin, commanding an average of 15.02% premium since the fund’s inception. But as competition grows and firms create cheaper, more accurate financial products, GBTC’s appeal has dropped dramatically — and its premium clearly shows for it. Analyzing Why Grayscale Bitcoin Trust Premium Continues to […]
For the past two months, Grayscale Bitcoin Trust (GBTC) has traded at a negative premium to the net asset value (NAV). GBTC historically traded at a high premium relative to the underlying, averaging a 15% premium since the fund’s inception. This was largely due to GBTC being the only investment vehicle easily accessible to institutional […]
Since February, Grayscale Bitcoin Trust (GBTC) has continued to trade at a negative premium. The Bitcoin fund, available to institutional investors on the traditional stock market, has traded below the price of Bitcoin since February 22, 2021 — a telling sign that its demand was drying up. Just four months ago, GBTC”s premium was at a whopping 33.12%. Since then, its premium has fallen into a downward spiral, hitting an all-time low of -14.34% on […]
Since February, Grayscale’s premier crypto fund Grayscale Bitcoin Trust (GBTC) has traded at a negative premium to its net asset value (NAV). GBTC, which has been the largest publicly-traded crypto fund available on the market, saw its historically high premium plummet as new competition weighed in. In the past, institutional investors had to accept GBTC’s […]
BTC demand via Grayscale Bitcoin Trust is dropping for several key reasons. There is a reason why Grayscale Bitcoin Trust (GBTC) emerged as a benchmark to measure institutional interest in Bitcoin (BTC). Grayscale no longer the only option for investorsThe digital currency investment product was among the only ones that offered hedge funds, endowments, pension funds, and family offices a way to gain exposure to Bitcoin without needing them to own the digital asset themselves.Therefore, a rising capital inflow into GBTC — such as the one reported last year, wherein Wall Street investors....