Zero interest rate? GBTC hits biggest discount since Bitcoin price plummeted in May

Bitcoin (Bitcoin) The trading price of the investment tool Grayscale Bitcoin Trust (GBTC) is the biggest discount since the BTC price plummeted in May.

The data on August 19 confirmed that with the BTC/USD trading price approaching US$44,000, the GBTC stock price was more than 16.5% lower than the spot price.

Analyst: Grayscale regression “takes time”

Grayscale manages $42 billion in assets in its various cryptocurrency funds, and there has been institutional interest during the recent Bitcoin price drop.

Although some Conspicuous buyHowever, progress was slow throughout the period of volatile activity, and Bitcoin fell from $64,500 to only $29,000.

Although the spot price has rebounded, GBTC’s interest has lagged, resulting in a sharp discount to the net asset value (NAV). With the recent rise of Bitcoin, the net asset value (NAV) has increased rather than decreased.

This week, the discount even exceeded its lowest point since July, which means it’s now in the deepest position Since the price collapse in May.

GBTC premium chart. Source: Bybt

In comments on the fund’s performance, statistician Willy Woo emphasized its management fees and previous trading conditions.

“GBTC reversed due to the 2% fee of 600k+ BTC. But before the decline, there was an oversupply of bubble arbitrage trading,” he said. Responded Speak to the popular commentator BTC Archive in the Twitter debate.

“Given that they cannot reduce inventory, it will take time to find the right balance again. Companies are also buying on dips, see Microstrategy.”

Bitcoin Unlock eventThose who have been worried about the negative impact on the market for a long time will also end this month, and most of them have been completed without any obvious market impact.

Echoes in the fourth quarter of 2020

At the end of 2020 and the beginning of 2021, when the recent Bitcoin bull market really started, on-chain analytics company Glassnode, arbitrage trading was a heavy market driver famous last week.

related: Bitcoin bull market is different from 3 ways at the end of 2020

This is related to the exchange’s outflow, which is now similar to the level of the same period, which shows that the “mass accumulation” among HODLers is due to the expectation that the BTC price will rise further.

Annotated chart of Bitcoin exchange net position changes.Source: Glassnode/Twitter