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29 sie 2023 · The Grayscale Bitcoin Trust (GBTC), which was launched in 2013, enables investors to trade shares in trusts that hold large pools of Bitcoin, with each share priced at near-enough the price of Bitcoin. As of August 2023, it has over $16 billion assets under management.
I understand that the GBTC premium refers to the difference in value of the assets held by the trust against the market price of those holdings. By if GBTC holds bitcoin, then is there a difference in value between the assets the hold and the market price of their holdings?
26 cze 2024 · If GBTC shares are trading at a price higher than the NAV, it's said to be at a "premium." On the other hand, if the GBTC stock is trading at a price lower than the NAV, it's at a "discount." This difference can be due to factors like supply and demand, investor sentiment, or market speculation.
19 wrz 2023 · For instance, between 2020 and 2021, the share price for GBTC grew by roughly 220% despite Bitcoin surging by almost 340%. In addition, in November 2022, Grayscale told its customers that it would no longer share its proof of reserves due to security issues.
9 kwi 2021 · GBTC is clunky because of how it opens and closes funding windows, who can initially invest, and of course the 2% management fee. With the premium collapse, the arbitrage trade is now broken.
8 lut 2024 · The premium or discount to NAV in the GBTC mirrors the difference between the trust's market price for its shares and the value of the underlying bitcoin per share.
17 mar 2021 · If the GBTC price is at a premium in six months, you benefit from that. For example, you call the Grayscale sales team and invest $1 million. Grayscale buys $1m of Bitcoin; wait six months, and you receive your GBTC shares.
