This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out.GBTC is trading at a sizable discount.Since its launch in 2013, shares of the Grayscale Bitcoin Trust have largely traded at a premium to NAV (net asset value). That changed in February of this year. For the first time in its history, GBTC dipped negative, meaning investors were purchasing shares of a trust representing more Bitcoin than if they were to just purchase directly on the market. In short, GBTC holders are receiving more for less at the price of indirect exposure. The drop in has been a recurring conversation amongst investors in the crypto space. Some have claimed it to be a high alpha trade for long-term investors, while others posit that it is a warning sign of a failing trust. The advantage of GBTC trading at a reliable premium until February was that companies like BlockFi could make outrageous sums of money and pass on yields to their customers. Those yields evaporated with the premium.At the time of writing, the the discount has dipped to -16.52%. I ran the math from the numbers provided by Grayscale, and a market purchase of the exact amount of Bitcoin represented in one share would cost you about $43.12. If you were to buy a share of GBTC that represents the same amount as BTC, the cost is $36.48. This explains the math behind the discount.Investors are left with an important decision: indirectly expose yourself to Bitcoin at a discount, or purchase it directly at the more expensive current market value. Some could argue that the deeper the NAV drops, the more attractive GBTC becomes, but this could also indicate a growing lack of interest in an asset that never returns to NAV.Grayscale is the most established trust in the crypto space and is committed to eventually having its trusts convert to ETFs. If you are considering going the GBTC route, read this blog on Bitcoin exposure.You can follow the price of Grayscale discount or premium to NAV here.Today's "Bullish On Bitcoin" livestream at 2 PM EDT will feature 2 amazing guests - Tone Vays and Sam Trabucco. Don't miss it!Link: https://www.youtube.com/watch?v=h-C6mXhmfYYIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.COIn This Issue:Grayscale DiscountBitcoin Thoughts And AnalysisAltcoin ChartsCoinbase Travels To JapanMore Banks Are Rushing To CryptoInstitutions Are Taking DeFi SeriouslyMy Recommended Platforms And Tools
Share this post
The Wolf Den #312 - Grayscale Discount
Share this post
This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out.GBTC is trading at a sizable discount.Since its launch in 2013, shares of the Grayscale Bitcoin Trust have largely traded at a premium to NAV (net asset value). That changed in February of this year. For the first time in its history, GBTC dipped negative, meaning investors were purchasing shares of a trust representing more Bitcoin than if they were to just purchase directly on the market. In short, GBTC holders are receiving more for less at the price of indirect exposure. The drop in has been a recurring conversation amongst investors in the crypto space. Some have claimed it to be a high alpha trade for long-term investors, while others posit that it is a warning sign of a failing trust. The advantage of GBTC trading at a reliable premium until February was that companies like BlockFi could make outrageous sums of money and pass on yields to their customers. Those yields evaporated with the premium.At the time of writing, the the discount has dipped to -16.52%. I ran the math from the numbers provided by Grayscale, and a market purchase of the exact amount of Bitcoin represented in one share would cost you about $43.12. If you were to buy a share of GBTC that represents the same amount as BTC, the cost is $36.48. This explains the math behind the discount.Investors are left with an important decision: indirectly expose yourself to Bitcoin at a discount, or purchase it directly at the more expensive current market value. Some could argue that the deeper the NAV drops, the more attractive GBTC becomes, but this could also indicate a growing lack of interest in an asset that never returns to NAV.Grayscale is the most established trust in the crypto space and is committed to eventually having its trusts convert to ETFs. If you are considering going the GBTC route, read this blog on Bitcoin exposure.You can follow the price of Grayscale discount or premium to NAV here.Today's "Bullish On Bitcoin" livestream at 2 PM EDT will feature 2 amazing guests - Tone Vays and Sam Trabucco. Don't miss it!Link: https://www.youtube.com/watch?v=h-C6mXhmfYYIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.COIn This Issue:Grayscale DiscountBitcoin Thoughts And AnalysisAltcoin ChartsCoinbase Travels To JapanMore Banks Are Rushing To CryptoInstitutions Are Taking DeFi SeriouslyMy Recommended Platforms And Tools