The value of the GBTC Bitcoin Fund drops by a record -35%
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Answer The value of the GBTC Bitcoin Fund drops by a record -35%
Grayscale Bitcoin Trust (GBTC) shares have never been cheaper compared to the value of the base Bitcoin.
The GBTC discount fell below 35% again to return to the number first recorded last June.
While the company’s share per share is valued at $17.27, the market value per share is currently only $11.30.
Debit account numbers which are publicly available can be found atGrayscale’s website.
As the company’s website shows, GBTC’s share price fell 4.77% on Monday, versus a daily drop of just 2.54% in the value of its holdings per share.
Specifically, GBTC’s net asset value is stable at $11.9 billion – about 635,000 bitcoins.Read:Report: Rise of Altcoins Cause of Bitcoin (BTC) Price Crash
Meanwhile, the total stake is only $7.74 billion.
GBTC is a bitcoin fund designed to give investors exposure to the price of bitcoin.
And unlike exchange-traded funds (ETF), GBTC shares are not easily created or destroyed.
This makes it difficult for GBTC prices to respond to fundamental Bitcoin movements, which leads to discrepancies.
The last time GBTC reached that low was in June, shortly after the Securities and Exchange Commission (SEC) rejected Grayscale’s request to move into a Bitcoin ETF.
Grayscale has since sued the agency.
One of Grayscale’s primary arguments for agreeing to the move was to erase its trading discount.
This will increase the value by approximately 50% for GBTC holders if the company’s application is approved.
The SEC responded that it could approve such a product only if Grayscale entered into a monitoring sharing agreement with a large-scale regulated market that relates to underlying or reference bitcoin assets.Read:Huawei provides a wallet that supports Chinese digital currency on its new phones
Grayscale last week offered to reward Ethereum product holders by distributing ETHPoW.
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