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Grayscale Bitcoin Trust (GBTC) Premium Plunges 30% to All-Time Low Amid Market Selloff

                                                            Da der Cryptomarkt in den letzten Tagen weiter geblutet hat, haben die Aktien des Grayscale Bitcoin Trust (GBTC) ihren Abschlag in Bezug auf die im Fonds gehaltene zugrunde liegende Crypto ausgeweitet.

GBTC Premium at new lows

According to recent data from Coinglass, the trust’s negative premium hit a new all-time low (ATL) as Bitcoin struggles around $35,000. GBTC has traded at a steady decline since February of last year, with the premium now at 30%.

The Grayscale Bitcoin Trust is an investment vehicle of Grayscale Investments, one of the largest investment managers for institutions involved in the cryptocurrencies car.

The GBTC fund allows institutional investors to gain exposure to Bitcoin through a regulated traditional investment vehicle without directly buying, selling or storing the asset.
GBTC Premium, Coinglass

Each GBTC share represents approximately 0.00095 BTC and tracks the market price of Bitcoin. The shares have a six-month minimum holding period and a minimum investment threshold of $50,000, making it very difficult for retail investors to get on board.

However, with the recent decline in institutional demand for the cryptocurrency, the trust’s stock premium has been trading at a deep discount.

The premium represents the difference between the price of the underlying asset, in this case Bitcoin, and the value of the trust’s shares.

The recent drop in premium rebates can be attributed to several factors, including the launch of several spot exchange-traded funds (ETFs), which offer institutional investors an alternative to investing in Bitcoin through a regulated exchange vehicle.

Grayscale Bitcoin ETF not in sight

Last year, Grayscale applied for his Bitcoin Converting trust into a spot bitcoin ETF that would be backed by actual units of the digital assets and not just tied to them by derivative contracts.

However, the United States Securities and Exchange Commission (SEC) has still not shown any signs of approving a spot Bitcoin ETF, citing several regulatory concerns.

Just days ago, First Trust and Skybridge Bitcoin Trust joined the long list of Bitcoin ETF applications rejected by the SEC.

Source: Crypto News Deutsch

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