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Biggest Crypto Fund’s 40% Premium Evaporates During Meltdown
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. The magnitude of GBTC’s drop and its eroding premium suggest that investors are dumping their positions, according to ... (full story)
