The GBTC premium is now a discount.
Which is creating a lot of uncertainty to its future. What I'd like to remind readers is each time a wave of large unlockings hit, not only does bitcoin's spot price rise, but the share price of the Trust gains in value with respect to its underlying holdings (NAV). If we ignore the fact it's at a discount then the likelihood of this measure to rise based on history is batting one-thousand - perfect.
If we take into consideration the massive wave of unlockings coming ahead, there's reason to believe the premium will return (unless it converts to an ETF before).
For more information on what this Grayscale Effect is and why it happens, here's a quick read to explain: jarvislabs.substack....the-grayscale-effect
-B
Which is creating a lot of uncertainty to its future. What I'd like to remind readers is each time a wave of large unlockings hit, not only does bitcoin's spot price rise, but the share price of the Trust gains in value with respect to its underlying holdings (NAV). If we ignore the fact it's at a discount then the likelihood of this measure to rise based on history is batting one-thousand - perfect.
If we take into consideration the massive wave of unlockings coming ahead, there's reason to believe the premium will return (unless it converts to an ETF before).
For more information on what this Grayscale Effect is and why it happens, here's a quick read to explain: jarvislabs.substack....the-grayscale-effect
-B
Your Pulse on Crypto,
Ben Lilly
Ben Lilly