GBTC is trading at a nearly 12% discount — its highest fall in history
The Grayscale Bitcoin Trust (GBTC) product is trading at a nearly 12% discount — its highest fall in history, according to data compiled by The Block.
The current premium of GBTC stands at minus 11.59%. The sharp fall in the premium suggests that some large investors might be cashing out their gains or just arbitraging premiums away. Competing products, i.e., new bitcoin exchange-traded funds (ETFs) in Canada, could also be a contributing factor.
GBTC has historically traded at a high premium, meaning the market price of its shares in the over-the-counter secondary market has been higher than the net asset value (NAV) of its shares.
But currently, the market price of GBTC stands down at $41, while NAV is at around $46. Since mid-December, the GBTC premium has steadily fallen from around 35%.
GBTC, managed by Grayscale, is the largest bitcoin investment product in the world. It manages more than $32 billion worth of assets. Grayscale has a total AUM of $38.5 billion across its products.
© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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Author: Yogita Khatri
