Grayscale Bitcoin Trust Premium Falls to Lowest in Years

The Grayscale Bitcoin Trust (ticker GBTC) premium to net asset value fell to 2.7% Friday, the lowest rate in years. The trust traded at a 40% premium to Bitcoin in December 2020.  Investors that purchased GBTC last month at a 40% […]

article-image

Source, Shutterstock, By Ascannio

share

key takeaways

key takeaways

  • GBTC traded at a 2.7% premium to net asset value Friday, down from 40% last month

key takeaways

The Grayscale Bitcoin Trust (ticker GBTC) premium to net asset value fell to 2.7% Friday, the lowest rate in years. The trust traded at a 40% premium to Bitcoin in December 2020. 

Investors that purchased GBTC last month at a 40% premium to Bitcoin are seeing 5% returns from the trust today, but Bitcoin is up 36%. 

GBTC fell around 10% Thursday, mirroring Bitcoin’s 9% fall, before rising slightly Friday to trade at $33.24. The largest digital currency was also up on Friday, rising to above $32,000 after dipping below $30,000 earlier in the week for the first time since December 2020. 

The discrepancy has many looking toward a Bitcoin exchange-traded fund, which would not trade at a premium, but the Securities and Exchange Commission has yet to approve crypto ETFs. 

“It seems incongruent that the SEC is allowing products such as triple-levered natural gas ETPs and leveraged FAANG ETNs, cannabis ETFs, and I could go on,” said Nate Geraci, president of investment-advisory firm the ETF Store. “The SEC is allowing all of these products on the market, but not a Bitcoin ETF, which actually would have been one of the top performing ETFs last year.” 

Tags

    Upcoming Events

    HYATT REGENCY SALT LAKE CITY

    TUES, OCT. 8, 2024

    Guided by the expertise of Blockworks Research Analysts team, this one day event will feature senior leaders, entrepreneurs, and developers from across the crypto industry. Attendees will have the opportunity to participate in an immersive experience to explore the latest trends, […]

    Salt Lake City, UT

    WED - FRI, OCTOBER 9 - 11, 2024

    Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

    recent research

    hivemapper.jpeg

    Research

    We believe crypto market participants overlook Hivemapper’s fundamental potential due to a poor understanding of both the niche map data market and Hivemapper’s positioning relative to incumbents. Hivemapper’s token model catalyzes both a cost and product advantage via unmatched map freshness and near real-time accuracy, which is its wedge into a market characterized by stale data and high data collection costs. Its current and potential future product suite may represent one of the strongest possibilities for PMF in crypto today.

    article-image

    👨‍⚖️ SBF’s courtroom sequel: Plus, Coinbase’s legal loss was DeFi’s gain

    article-image

    Public mining companies have been acquiring sites, refreshing machine fleets and diversifying business models in preparation for the event

    article-image

    Exploit shows centralization can sometimes be an asset

    article-image

    The Fidelity Ethereum Fund, like other proposed ETH ETFs, seeks to stake a portion of its assets, according to the firm’s Wednesday registration statement

    article-image

    The DAO first voted on enabling SAFE transfers over a year ago