Shares in Grayscale’s Bitcoin Trust for the first time traded at a discount compared to spot BTC for a whole month.
Rafael Schultze-Kraft, the CTO of on-chain analytics provider Glassnode, shared the observation on April 1 on Twitter, noting that shares in the institutional fund manager’s Bitcoin Trust traded at a fictitious -6% discount on average in March.
He noted that the discount in Grayscale’s BTC shares coincided with the launch of the Purpose Bitcoin ETF in Canada – which has collected 16,000 BTC worth approximately $ 940 million since its launch in late February.
The ETF has amassed more than 16,000 BTC in more than a month. (Still nothing compared to Grayscale’s 654k BTC holdings).
– Rafael Schultze-Kraft (@ n3ocortex) April 1, 2021
Glassnode’s CTO is not alone in speculating that the launch of the first Bitcoin ETF in North America may take the institution away from Grayscale, with Galaxy Digital’s Mike Novogratz. tweeting
[Grayscale] used to be the only game in town. Now have an ETF in Canada that charges 40 bps. And there are many funds here in the US with very low fee structures. “
Two Bitcoin and crypto ETFs were also approved by the Brazilian Securities and Exchange Commission earlier this month.
Schultze-Kraft noted that the Trust’s Bitcoin holdings have been flat for the past few weeks, stating that this is: $ GBTC shares makes little sense as long as existing shares are traded at a discount. “
Grayscale allows accredited investors to create baskets of stocks representing BTC or other digital assets by depositing fiat. Grayscale then deposits a corresponding amount of cryptocurrency into its trusts, with investors facing a six-month blocking period, after which they can sell their shares through over-the-counter or OTC markets.
Since Grayscale’s stock has historically traded at a premium in the spot crypto markets, many institutional investors have invested in the Trust as an arbitrage game, with speculation that the significant spread would offset the 10% stake and interest costs associated with the six-monthly block.
Grayscale currently offers $ 45.6 billion in assets under management of the 13 trusts, following the launch of five new trusts last month. The new Decentraland (MANA) Trust represents $ 17.4 million, followed by Livepeer (LPT) with $ 12.3 million, Filecoin (FIL) with $ 8.5 million, Basic Attention Token (BAT) with $ 3.7 million and Chainlink (LINK) with $ 3.5 million.
While all of Grayscale’s newly supported resources have increased significantly in recent weeks, Filecoin’s achievements are at the top of the list with a gain of 105% last week according to CoinMarketCap.