After spending the entire month of March at a loss, the downtrend in Grayscale Bitcoin Trust premium has extended. At the time of publication, the premium stands at -11.45%, near its all-time low at -14%.
GBTC trading at a discount. Source: Ycharts
In contrast, the Canadian Purpose Bitcoin ETF had a nearly month-long streak at record inflow levels begging April. Comparing the data, GBTC at a discount, and the growth in the BTC ETF, there is a trend in investors favoring the latter.
— Eric Balchunas (@EricBalchunas) April 2, 2021
Unlike other financial products, GBTC shares cannot be freely traded. They must go through a 6-month “lock-up” period. Although they give exposure to the price of BTC, stakeholders’ strategy to profit is based on the premium, as analyst Ben Lilly points out: