A month-long cryptocurrency sale is a special case for holders of the Grayscale Bitcoin Trust, the world’s largest Bitcoin trust.
Bitcoin has fallen almost 32% since November 10, and that $ 30 billion (code GBTC) has fallen almost 37% over that period.
At Friday’s closing price, the difference between the GBTC share price and the price of Bitcoin’s holding hit a record high of 21.36%.
This means that new investors can buy GBTC shares for less than the actual market value of Bitcoin, but existing investors will lose money due to the close time for months. GBTC’s share price fell 3.46% on Friday, the data showed, to a price of $ 43.77 per share. However, each GBTC has 0.00093202 BTC and based on the current price of Bitcoin the actual price is $ 34.42.
In the final analysis, this discount is due to the reliability model. Unlike most exchange rates, GBTC does not allow redemption. This means that the product cannot be designed or manufactured to balance supply and demand for the product. Conversely, trusted shareholders should seek buyers in the secondary market, which will increase prices when Bitcoin prices drop.
Greyscale parent company Financial Group attempted to offset this discount by buying back GBTC shares. Gray also submitted a request to convert GBTC to a stock exchange in October, but the U.S. Securities and Exchange Commission (SEC) only cleared the document for release.