I don't have the developer tools to demonstrate this, but maybe some of you do.I invest in GBTC, currently the only way to own Bitcoin in a retirement account. I track it every day, and I look at its opening and closing price corresponding to the price of BTC on GDAX. Recently, even though the price of BTC has gone up, GBTC would still go down.Everyone knows there is a premium to invest in GBTC, when you do the math and figure out how many BTC you are actually buying. According to Grayscale, you are buying 0.00097609 per share. So roughly 1000 shares = 1BTC (for convenience sake).The current share price is $12.73. So it is trading at a price of about $12,730 per coin.Now this premium has been narrowing for quite a while. Why? Nothing has changed in terms of the management, quality of the trust, fees, etc. The only thing I can think of is that some smart money knows there will be competition very soon, in the form of one of the ETFs getting approved.Someone with some development skills maybe can analyze the spread over time in relation to the Bitcoin price, but I believe this is positive news, despite the fact my retirement account is not growing as fast as the Bitcoin price. I'm okay with that if it means more liquidity in the near future.
Submitted August 28, 2019 at 08:23PM
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