The Bitcoin Investment Vehicle (BTC) Grayscale Bitcoin Trust (GBTC) is trading at the biggest discount since the BTC price crash in May.
Thursday’s data confirms that while the BTC / USD pair is trading near $ 44,000, GBTC shares are more than 16.5% below the spot price.
Analyst: Grayscale’s rally “will take time”
Grayscale, which has $ 42 billion in assets under management through its various crypto funds, has seen how Institutional interest has endured throughout the recent Bitcoin price crash.
However, despite some flashy purchases, Progress has been slow throughout the period of volatile activity, in which Bitcoin went from $ 64,500 to just $ 29,000.
While the spot price has recovered, Interest in the GBTC has lagged behind, producing a significant discount on net asset value (NAV), which has increased, not decreased, with recent Bitcoin gains.
This week, the discount has even surpassed its lowest point since July, which means that it is now at its lowest point since the beginning of the May price drop.
In comments on the fund’s performance, the statistician Willy Woo highlighted his management commission, in addition to the commercial conditions above.
“GBTC fell due to the 2% rate by over 600,000 BTC. But it was oversupplied by sparkling ‘arb’ trading before the crash”, answered to the popular commentator BTC Archive during a debate on Twitter.
“It will take time to find its proper balance again since they cannot reduce inventory. Companies also bought during the downturn, look at Microstrategy. “
In the meantime, GBTC’s unlock events, long feared to be a negative influence on the market, are set to come to an end this month; the vast majority are already complete without any noticeable impact on the market.
Echoes of the fourth quarter of 2020
That arbitrage trade was a strong market driver in late 2020 and early 2021, the period when Bitcoin’s most recent bull run actually began., he pointed last week on-chain analytics firm Glassnode.
This was in relation to exits from exchanges, which are now at similar levels to that same period., which points to a “strong buildup” among hodlers in anticipation of further spikes in the price of BTC.