The world’s largest bitcoin fund is selling faster than cryptocurrency.
The $ 32,0 Grayscale Bitcoin Trust (Ticker GBTC) fell 20% this week, overtaking a 13% drop in the world’s largest cryptocurrency. GBTC’s one-time premium for its underlying holdings has largely dried up as a result, with GBTC’s price down 0.4% below its underlying holdings on Wednesday – the first rebate since March 2016, by Bloomberg According to the data compiled.
Disappearing premiums show that after billions poured into GBTC as investors sought exposure to the Bitcoin rally, investors are looking for avenues as climbing stalls, according to Bloomberg Intelligence.
“It is a panic or profit-taking sale,” said Eric Balchunas, BI’s senior ETF analyst. “It’s almost like the price of GBTC. Bitcoin is an amplified version of the value.”
Bitcoin rose to a record of over $ 58,000 last weekend, but has since stumbled. The cryptocurrency fell by another 1.6% on Thursday, on pace for its worst weekly pullback in a year.
Speaking on a panel for the Bloomberg Crypto Summit on Thursday, Grayscale Investments Chief Executive Officer Michael Sonnenschein acknowledged the risk of GBTC’s premium disappearing.
“It’s certainly a risk, there’s no question about it,” Sonnenshein said, but ultimately the price discovery at GBTC every day is completely driven by market forces “.