Bitcoin (BTC), which has fallen to $24,000, has cost its largest institutional investor more than any average hodler.
According to Coinglass data, the Grayscale Bitcoin Trust is trading at a discount of almost 31% according to Coinglass’ May 13th report.
Grayscale CEO: Investors “waiting for things settle down”
GBTC’s fledgling recovery has been hampered by market volatility this week.
The so-called GBTC Premium, which was long in negative territory, and therefore a discount in practice has now reached its lowest point.
The discount for GBTC shares was 30% as of May 13th. This means that shares traded almost at one-third the Bitcoin spot price (referred also to net asset value or NAV).
These figures represent a significant turnaround in the premium, which had managed to climb to 21% by mid-April.
Grayscale continues to attempt to convert GBTC to an exchange-traded funds (ETF) but overall, GBTC has traded at a discount for a long time.
Grayscale has shown courage and determination in their campaign for GBTC to be converted into a Spot Bitcoin ETF. They are worthy of your support,” MicroStrategy CEO Michael Saylor argued, inviting his Twitter followers to call for U.S. regulators to approve the plans.
This would be a rare move in the United States. The Securities and Exchange Commission (SEC), has lagging behind other countries in appraising a Bitcoin spot-based ETF.
Despite the turmoil, Grayscale CEO Michael Sonnenshein remained positive about GBTC demand and institutional demand for Bitcoin exposure.
He stated that he believed some investors were waiting for things “to settle down” in an interview with CNBC on May 12.
“I think that crypto will find its feet once things settle down. Some institutional buyers will start to step in. Some have indicated that they are actually starting to buy at these levels.”
GBTC premium vs. assets vs. BTC/USD chart. Source: Coinglass
Record daily buys for the Purpose Bitcoin ETF
The trading conditions have also benefited the first Bitcoin spot ETF in Canada.
Related: Why the US needs a spot Bitcoin ETF: 21Shares CEO
On May 13, the Purpose Bitcoin ETF gained 6,903 BTC in one day, marking its largest single-day buy in history.
Purpose now manages 41,620 BTC, surpassing its March record of 36,322 BTC.
BTC/USD chart vs. Purpose Bitcoin ETF BTC Holdings Source: Coinglass
The launch of Australia’s first spot ETFs (CBTC) was accompanied by the jump. One of these, Cosmos-Purpose bitcoin Access ETF (CBTC), purchased shares in the Canadian Purpose Offering.
Important note: Yesterday, two Bitcoin ETFs were launched in Australia. One of them is the Cosmos-Purpose BitcoinAccess ETF ($CBTC). This ETF allows you to get exposure to Bitcoin by purchasing shares of the Canadian #Bitcoin Purpose spot exchange ETF. The latter now effectively reflects two ETFs.
Jan Wustenfeld (@JanWues), May 13, 2022com You should do your research before making any investment or trading decision.
Eileen Wilson –Technology and Energy
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