Dropping GBTC Premium: Anonymous Group Claims Blockfi Facing Solvency Issues ...
An anonymous group has claimed that Blockfi, which has an estimated $1.8 billion in customer assets invested in Grayscale Investment’s GBTC, is facing potential insolvency issues associated with the negative premium on the GBTC shares. Using the negative premium of minus 7.89% on the GBTC shares to illustrate the extent of the problem, the anonymous group posits that Blockfi faces a loss of $232 million. Anonymous Group Alleges Blockfi Insolvency Threat According to a statement posted on the anonymous group’s website, Blockfi, which is promising its investors an annualized....
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Following the recent bitcoin price pullback, the latest Skew data now indicates that the premium rate on Grayscale’s GBTC is under 10%. The lower rate comes just weeks after the premium peaked at 41% towards the end of December. The GBTC premium is a measure of the extent of differences in the value between the crypto asset on the open market and in the Grayscale fund. The same data also shows that between late October of 2020 and January 21 of the current year, this premium averaged 22%. However, in the seven days leading up to January 21, this rate dropped to 7.3%. According 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 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 […]
The largest Bitcoin trust in the world, the Grayscale Bitcoin Trust (GBTC) has been closing ranks around its premium over the last year. After hitting an all-time low of -48.89% in December 2022, the gap has been effectively closed to the point that it has reached a two-year high. GBTC Premium Sitting At -10.35% The […]
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 […]