Cryptocurrencies
Biggest Crypto Fund’s 40% Premium Evaporates During Meltdown
- GBTC falls 15% for the week while Bitcoin notches 11% decline
- New entrants could crimp GBTC demand, says ETF Store’s Geraci
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The biggest Bitcoin fund’s hefty markup is collapsing amid concern investors are racing for the exit amid the cryptocurrency’s plunge this week.
The $22 billion Grayscale Bitcoin Trust (ticker GBTC) dropped over 15% this week, outpacing Bitcoin’s weekly losses of 11%. As a result, GBTC’s premium to its underlying holdings -- which swelled to 40% in December as the cryptocurrency surged -- has dropped to just 2.8%, the lowest since March 2017, according to data compiled by Bloomberg.