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Negative premium of 31% on Bitcoin shares of Grayscale

Owners of shares of the Bitcoin Fund of Grayscale come home from a cold fair. In the midst of the fall in the last days, the negative premium has also fallen to a new low point.

Negative premium

Grayscale has 640,000 BTC in KAS for customers looking for exposure to Bitcoin. Investors can buy GBTC shares, while Grayscale underlying Bitcoin and arranges everything about custody. Buy Bitcoin easily and quickly at Bitvavo. Get started and do not pay trading costs for your first purchase up to € 1,000!

However, the price of a GBTC share does not move exactly the same with the price of Bitcoin on the spot market. Currently you even get 31% for GBTC compared to BTC. In other words: customers who bought GTC a year and a half ago when the Premium was almost zero, have lost 31% extra value (on top of the volatility of Bitcoin itself).

Negative premium of 31% on Bitcoin shares of Grayscale

The problem lies in the fact that GBTC is a trust fund and not Exchange Traded Fund (ETF). Grayscale has been making frantic attempts to make it an ETF for months, but the stock market watchdog does not want to go along. Read more on Ipostocksplanner.com for more information. This then causes a huge amount of frustration within Grayscale in the direction of the sec. So bad that the CEO is even considering a lawsuit.

ETF refuse

The SEC would express its judgment about an ETF before July 6. The approval of the first spot-based bitcoin ETF would be a turning point for the industry. However, the recent crash makes it even more unlikely.

The SEC rejects all spot market-based ETFs, because it wants to protect the investor and consumer. However, the negative premium is not a good fact for GBTC owners. These shares are also increasingly easier for the retail market, especially now that Robinhood is also offering it to its customers.

Robinhood is said to have 31 million users, millions of which are on the waiting list for a cryptowallet. Last month a handful of Americans was given the option to test the wallet.