Grayscale Bitcoin Trust is trading at a record 36.7% discount, but is it justified?
Grayscale Bitcoin Trust is trading at a discount of 36.7% to its actual BTC holdings, and it is possible that more than the market-wide downtrend is the reason for the spread.
Market analysis
U.S. investors have been waiting for Bitcoin (BTC) exchange-traded fund (ETF) approval since May 2014, when the Winklevoss Bitcoin Trust filed a variation request with the Securities and Exchange Commission (SEC ) the United States.
Over the years, the SEC has rejected every applicant, and the latest rejection was issued to WisdomTree's request for a spot Bitcoin ETF on October 11. The SEC concluded that the offering lacked the ability "to obtain the information necessary to detect, investigate, and deter fraud and market manipulation, as well as violations of foreign exchange rules and applicable federal laws and rules in matters of securities."
Bitcoin investment trust vehicles have been around since 2013, but they are restricted to accredited investors. Launching a spot BTC ETF would open the market to retail investors and a wider range of mutual funds in the industry.
At the moment, US regulators are reluctant to release what many believe is a fairer and more transparent product for Bitcoin. A conflicting reality is that while BTC spot ETFs continue to be rejected, the same product has long been available for bonds, global currencies, gold, Chinese stocks, real estate, oil and gas. money.
Grayscale Bitcoin Trust (GBTC), a $12.3 billion investment fund, is currently trading at a record 36.7% discount to its Bitcoin holdings, but that's not a big deal. - not be a "buy down" type discount. The gap started after the Toronto Stock Exchange launched the Purpose Bitcoin ETF in February 2021, which is a spot investment product.
What is an Exchange Traded Fund?An ETF is a type of security that holds diversified underlying investments, including commodities, stocks or bonds. The ETF could look like a m...
Grayscale Bitcoin Trust is trading at a discount of 36.7% to its actual BTC holdings, and it is possible that more than the market-wide downtrend is the reason for the spread.
Market analysis
U.S. investors have been waiting for Bitcoin (BTC) exchange-traded fund (ETF) approval since May 2014, when the Winklevoss Bitcoin Trust filed a variation request with the Securities and Exchange Commission (SEC ) the United States.
Over the years, the SEC has rejected every applicant, and the latest rejection was issued to WisdomTree's request for a spot Bitcoin ETF on October 11. The SEC concluded that the offering lacked the ability "to obtain the information necessary to detect, investigate, and deter fraud and market manipulation, as well as violations of foreign exchange rules and applicable federal laws and rules in matters of securities."
Bitcoin investment trust vehicles have been around since 2013, but they are restricted to accredited investors. Launching a spot BTC ETF would open the market to retail investors and a wider range of mutual funds in the industry.
At the moment, US regulators are reluctant to release what many believe is a fairer and more transparent product for Bitcoin. A conflicting reality is that while BTC spot ETFs continue to be rejected, the same product has long been available for bonds, global currencies, gold, Chinese stocks, real estate, oil and gas. money.
Grayscale Bitcoin Trust (GBTC), a $12.3 billion investment fund, is currently trading at a record 36.7% discount to its Bitcoin holdings, but that's not a big deal. - not be a "buy down" type discount. The gap started after the Toronto Stock Exchange launched the Purpose Bitcoin ETF in February 2021, which is a spot investment product.
What is an Exchange Traded Fund?An ETF is a type of security that holds diversified underlying investments, including commodities, stocks or bonds. The ETF could look like a m...
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