The premium price of the popular bitcoin (BTC) fund of Grayscale Investments, the Grayscale Bitcoin Trust (GBTC), says YCharts dropped to all-time low yesterday.
The US institutional trade product is now 21.23% below net asset value (NAV), which is more than 20% below the price of bitcoin. The GBTC premium has now been negative for almost 3 months since February.
One reason for this is that this year there is more competition for the product on the market. Especially the new Canadian bitcoin exchange-traded funds (ETFs), or publicly traded funds, would steal investors.
Grayscale therefore plans to eventually convert GBTC to an ETF, but is dependent on the US Securities and Exchange Commission (SEC), which has not yet approved any bitcoin ETF.
In related news, Grayscale announces that the company has filed with the SEC to convert the Grayscale Digital Large Cap Fund (GDLC) into a so-called reporting company to make. The fund manager must report periodically to the SEC, but that may attract more cautious investors:
✅ @Grayscale Digital Large Cap Fundhttps://t.co/LkK8XRhQtA
– Michael Sonnenshein (@Sonnenshein) May 13, 2021
In addition, the Digital Currency Group, the parent company of Grayscale and CoinDesk, announced last week to buy $ 750 million of GBTC shares:
Digital Currency Group Announces Plan to Increase Purchase of Shares of Grayscale Bitcoin Trust (OTCQX: $ GBTC)https://t.co/13XQsHpRYt
— Barry Silbert (@BarrySilbert) May 3, 2021
Grayscale now manages 47.6 billion cryptocurrencies. That was $ 54.1 billion a few years ago, but fell yesterday due to a red-colored market.
05/13/21 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
Total AUM: $47.6 billion$ BTC $BCH $ ETH $ETC $ZEN $LTC $ XLM $ZEC $BAT $LINK $ MANA $ FIL $LPT pic.twitter.com/XbCxiR5FGJ
— Grayscale (@Grayscale) May 13, 2021
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