Grayscale Bitcoin Trust Premium Strongly Recovers: Can It Be Positive Again?

As of February, Grayscale's main crypto fund Grayscale Bitcoin Trust (GBTC) is trading at a negative premium to net asset value (NAV). GBTC, the largest publicly traded crypto fund on the market, has seen its premium decline historically as new competition intensified. In the past, institutional investors had to accept GBTC's exorbitant management fees and penalize payback periods because there was no alternative. But now, with a wave of Bitcoin trading on the market in Canada, dozens of investment firms are following the case by sending their own funds to the United States. Three Bitcoin ETFs located in Canada – Purpose, Evolve and CI Galaxy – offer expense rates of 1%, 0.75% and 0.40% compared to 2% of Grayscale. Both Bitcoin ETF and Evolve Fund Bitcoin ETF target investments have fallen -40% over the past 3 months, closely monitoring the evolution of basic (Bitcoin) prices. Source: According to data from chain analysis site Glassnode, Grayscale Bitcoin Trust's premium fell to -21.73%, the lowest point in the history fund on May 13. As a reminder, GBTC was negotiating a premium of over 30% at the beginning of the year. Related Readings: Grayscale Bitcoin Trust (GBTC) Premium Sinks to All-Time Lows With Canadian competitors taking market share and US ETFs at the checkpoint, institutional entries have dried up quickly – pushing the fund's premium to date with a massive drop. Grayscale Bitcoin Trust Premium shows signs of life: the light at the end of the tunnel? Grayscale announced in early April its intention to transform GBTC's funding structure into an ETF in hopes of staying competitive. The news caused the premium to increase, albeit temporarily. But now that six-month grayscale lockout times are over, the fund's NAV premium has dropped to -3.87%. According to GBTC's progress payment program, the maturity date of the majority of institutional investors will be reached.

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    IG 0.6pips (fixed) margin: 3.33%
    Core Spreads 0.6pips (variable) margin: 3.33%
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