Bitcoin News

GBTC Shares Are Dropping Much Faster Than Crypto Market Fall.

The leading public bitcoin trust ‘GBTC’ is facing a serious situation: Its share price is dropping faster than the underlying crypto asset.

Just a few days earlier, the GBTC [Grayscale Bitcoin Trust] trades at a premium to Bitcoin [BTC] itself. But that premium became a reduction in the week, with GBTC closing at a price nearly 4% less than the market price of the underlying asset earlier on Thursday.

Within mid-December, GBTC shares traded at over a 35% premium, consistent with data from YCharts, a reminder that price action for GBTC doesn’t perfectly match bitcoin’s own price action by any means.

Grayscale’s bitcoin trust is not solely trading at a reduction, however. 3iQ’s Canadian Bitcoin Fund [QBTC], although a smaller fund than Grayscale, was also trading at a roughly 4% discount to its underlying asset, consistent with market data from CryptoQuant.

GBTC and QBTC are trading at discounts as bitcoin itself is selling off, dropping to below $45k Friday afternoon before slightly recovering to a price over $48k.

At last check, Bitcoin [BTC] was trading at $46,877 USD, as per CoinMarketCap’s Bitcoin price level, with a year-to-date gain slightly below 60%.

Analysts have predicted the shrinking premium could be due to reduced demand for bitcoin, or due to the increasing competition among providers of bitcoin-focused ETPs [Exchange-Traded Products].

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