Bitcoin has struggled to break the $20,000 resistance area this weekend.
Grayscale Bitcoin Trust (GBTC), which registered a record high, further indicates a possible case of dwindling institutional interests in the flagship cryptocurrency.
According to Arcane Research, the current price of the Bitcoin fund was trading at a 36.7% discount on BTC spot prices. This is the largest discount in the history.
There are compelling reasons to buy GBTC at the current discount. Wall Street may be overlooking BTC opportunities, or unwilling to make a long-term investment in BTC. This is evident by the fact that discount rates have not decreased. As sentiment improves, GBTC may see a decrease in its discount. GBTC could absorb some BTC demand, reducing some upside potential in BTC.
Today, GBTC manages 635,240 BTC and is worth approximately $12 billion. This is 3.3% of the circulating cryptocurrency supply. GBTC trades at a positive premium close to 20% since 2015. However, it flipped to a negative premium last fiscal year. The average discount over the entire period was 19%. It is noteworthy that the gap formed following the launch of Purpose bitcoin ETF on Toronto Stock Exchange last February. However, the SEC has been hostile to a spot ETF. WisdomTree applied for one in the United States, but was stopped by the commission. WisdomTree’s application for one in the United States was recently blocked by the commission.
CryptoPotato’s Grayscale’s GBTC Sets a New Record at 36.7% Discount
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