Saturday, October 23, 2021
Home Crypto News Analysis Grayscale Bitcoin Trust (GBTC) Premium Fell To -18.92% For The First Time...

Grayscale Bitcoin Trust (GBTC) Premium Fell To -18.92% For The First Time Ever

- Advertisement -

Grayscale Bitcoin Trust (GBTC), which is trading at a negative premium for two months, hits a record low.

That means the market price of GBTC shares is about 19% lower than its net asset value or NAV.

A negative premium means the investor expects nothing in return for investing in that product.

Grayscale Bitcoin Trust (GBTC) Premium Fell To -18.92%

The reasons behind negative Grayscale Bitcoin Trust were to temporarily suspend deposits in GBTC, other competitive products like Canadian Bitcoin ETFs, and large investors selling their BTC holdings.

In April, one of the holders of shares in the Grayscale Bitcoin Trust, the investment firm Marlton, wrote an open letter to the management of Grayscale, calling to open the opportunity to invest in GBTC.

Arcane Research pointed the emergence of alternative instruments like launch of Bitcoin ETF’s, and the purchase of the BTC directly by individual companies as reasons for the discount.

Recently, the Canadian regulator approved a exchange-traded fund (ETF) based on the BTC available to investors in US dollars. A similar instrument was also listed in Brazil.

In the spring of 2021, the U.S. Securities and Exchange Commission (SEC) began reviewing two applications to launch ETFs from WisdomTree and VanEck.

Recall that Grayscale plans to convert GBTC into an exchange-traded fund (ETF). In March, the company posted nine vacancies related to this initiative.

Market experts believe that converting GBTC into a Bitcoin ETF is the best alternative for Grayscale.

Grayscale recently announced that it is fully committed in changing GBTC into a Bitcoin ETF.

- Advertisement -
Albert Brown
Albert Brown is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. Holds major cryptocurrencies and has written for multiple crypto media outlets. His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.


Please enter your comment!
Please enter your name here

- Advertisment -

Recent News & Articles

The Bank Of Israel Aims To Launch Its CBDC On Ethereum

For now, central banks around the world are still working on developing and testing their own CBDCs, but there are new ones that are...

Russian Central Bank Head Says Russia Is Not Ready To Launch Crypto ETFs

The head of the Bank of Russia, Elvira Nabiullina gave a negative answer to the question about the possibility of trading cryptocurrency ETFs in...

Spanish Banks Anxiously Waiting For Central Bank Approval To Work With Cryptocurrencies

Spanish banks are interested in providing cryptocurrency services directly to clients and expect the Spanish Central Bank will bring regulatory clarity for crypto.

Reddit Intend To Bring Its Non Fungible Token (NFT) Platform

Reddit is looking to hire people for what could become a new platform for non-fungible tokens (NFTs) and digital goods. ...

Second Bitcoin ETF, Valkyrie Bitcoin Strategy ETF (BTF) Started Trading On Nasdaq

On the Nasdaq Stock Exchange under the ticker BTF, a Bitcoin futures ETF from Valkyrie Investments began trading at a price of $25.5.

Transient Raises $1.2 Million in IDO Public Sale to Build the Amazon of Smart Contracts

Tortola, British Virgin Islands, 22nd October, 2021, Transient Network, a Smart Contract Global Marketplace, is thrilled to announce that it has raised $1.2 million...

Binance Smart Chain Is Bringing Fee-Burning Mechanism Like Ethereum

The Binance Smart Chain (BSC) has published a proposal to improve the BEP-95 ecosystem, This new mechanism will be similar to the Ethereum chain...

Subscribe To Our Newsletter

Get Updated with All The latest Crypto News, Articles, Reviews, Analysis and much more. Delivered Every Monday.