How Grayscale Bitcoin Trust at a discount could change everything for BTC

How Grayscale Bitcoin Trust at a discount could change everything for BTC


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.

Also the Canada Bitcoin ETF’s lifetime inflow streak has now reached 25 DAYS, an unprecedented feat in ETF history. This is my new $JETS. pic.twitter.com/HjB5qmcP9r

Trending: Robin Bullock: Why They Are Desperate To Stop The “Last Trump”

— 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:

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