GBTC 'elevator to hell' sees Bitcoin spot price approach 100% premium
Bitcoin (BTC) investment vehicle, the Grayscale Bitcoin Trust (GBTC), is trading close to 50% below the BTC price on spot markets.
Data from on-chain analytics platform Coinglass confirms that on Dec. 8, GBTC shares hit a new record low of -47.2% against BTC/USD.
In the latest bout of nerves to hit the Bitcoin industry since the fall of FTX, GBTC is nearing half-price versus the price of Bitcoin.
The largest institutional Bitcoin investment vehicle, with assets worth around $10 billion, GBTC has faced numerous challenges in recent years.
The price of its shares previously traded higher than BTC/USD, resulting in what was called the “GBTC premium.” Since 2021, however, that premium has turned negative, but the resulting “discount” has done little to lure additional institutional interest.
As Cointelegraph reported, beyond a few key exceptions such as ARK Invest, GBTC is languishing as operator Grayscale, part of Digital Currency Group (DCG), attempts to convert it to an exchange-traded fund (ETF) — suing United States regulators standing in its way.
Amid the legal battle, FTX has sparked liquidity problems elsewhere in the DCG empire, and this has led to doubts over Grayscale and GBTC. Grayscale declining to show proof of its BTC reserves last month, despite custodian Coinbase confirming its assets were secure, added to the tensions.
“Grayscale is in some real trouble if they have to reveal where all the Bitcoins are that back the GBTC,” popular commented Bitfinex’ed wrote in part of a Twitter discussion on the topic this week.
This week, things became even worse, as Grayscale faced a lawsuit from investor Fir Tree over what it calls “shareholder-unfriendly actions.”
Meanwhile, overall interest in crypto ETFs has plummeted this
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