In Focus

Best Crypto Staking Options in 2022 (I)

@$34765: Grayscale Bitcoin Trust (GBTC) Premium Plummets 30% to All-time Low Amid Market Sell-off

@$34765: Grayscale Bitcoin Trust (GBTC) Premium Plummets 30% to All-time Low Amid Market Sell-off

As the crypto market continues to bleed over the past days, the Grayscale Bitcoin Trust (GBTC) shares have widened their discount in relation to the underlying crypto held in the fund.

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 the $35,000 mark. The GBTC has been trading on a steady decline since February last year, with the premium now sitting at 30%.

The Grayscale Bitcoin Trust is an investment vehicle provided by Grayscale Investments, one of the largest investment managers for institutions venturing into the cryptocurrencies space.

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, source: Coinglass


Each GBTC share represents approximately 0.00095 BTC and tracks bitcoin’s market price. The shares have a minimum holding period of six months and a minimum investment threshold of $50,000, making it very difficult for retail investors to get onboard.

However, with the recent decline in institutional demand for the cryptocurrency, the Trust’s shares premium has traded at a steep discount.

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

The latest plunge in premium discounts can be attributed to several factors, including the launch of several spot exchange-traded funds (ETFs), providing institutional investors with an alternative to invest in Bitcoin via a regulated stock market vehicle.

Grayscale Bitcoin ETF Not in Sight

Last year, Grayscale filed to turn its Bitcoin Trust into a spot Bitcoin ETF, which would be backed by actual units of the digital assets and not just linked to it through 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 a few days ago, First Trust and Skybridge Bitcoin Trust joined the long list of Bitcoin ETF applications rejected by the SEC.

More Airdrops...

FREE USDT Tokens In Armaldia NFT Airdrop!
FREE BOOM Coins In Spintop x BoomLand Crypto Airdrop!
FREE BOOM Tokens In Spintop x BoomLand NFT Airdrop!
FREE EIZ Tokens In Eizper Chain NFT Airdrop!
FREE BNB Tokens In Clash of Coins NFT Airdrop!
FREE KCAL + FAT points + SNEAKs NFTs Coins In Step App Crypto Airdrop!
KCAL + FAT points + SNEAKs NFTs
FREE KCAL + FAT points + SNEAKs NFTs Tokens In Step App NFT Airdrop!
KCAL + FAT points + SNEAKs NFTs
FREE AGORA + USDT Coins In Agoraverse Crypto Airdrop!
FREE AGORA + USDT Tokens In Agoraverse NFT Airdrop!
FREE BSKY + USDT Coins In Skylandia Crypto Airdrop!

More NFT Drops...

Mar 29
NFT DROP: Meta Panther Club
Mar 29
NFT DROP: Blockmaster NFT
Mar 29
NFT DROP: Symbio
Mar 29
NFT DROP: Crypto Wiener NFTs
Mar 29
NFT DROP: Manga Society
Mar 29
NFT DROP: Stoned Puppies
Mar 29
NFT DROP: MVA ( Mysterious Vegan Ape )
Mar 28
NFT DROP: Sol Dog Club
Mar 28
NFT DROP: Dodomoo
Mar 28

More Crypto News...

@$34765: Grayscale Bitcoin Trust (GBTC) Premium Plummets 30% to All-time Low Amid Market Sell-off was posted on January 22, 2022. This post may include a link to a website operated by a 3rd party. MegaSheep doesn’t claim to own or represent any of the trade names, products or trademarks associated with any of the linked posts!

Copyright 2018-2022,
Power In The Horde(TM)
All rights reserved!