Bitcoin (BTC)’s descent to $24,000 has cost its largest institutional investment vehicle more than the average hodler.
Grayscale Bitcoin Trust (GBTC) is now trading at a discount of almost 31%, according to data from on-chain monitoring resource Coinglass on May 13.
Grayscale CEO: Investors ‘waiting for things to settle down’
Amid continued market volatility this week, GBTC has seen its fledgling recovery flounder – for now.
The so-called GBTC premium, long in negative territory and thus a discount in practice, has now reached its lowest level so far.
On May 13, the discount was 30.6%, meaning shares in GBTC were trading almost a third below the bitcoin spot price (referred to as net asset value, or NAV).
The numbers mark a clear trend reversal for the premium, which rose to a 21% discount in mid-April.
Overall, however, GBTC has long traded at a discount as Grayscale continues to seek to convert it into an exchange-traded fund (ETF).
“It took clarity and conviction to set up GBTC and now Grayscale is showing courage and commitment in its campaign to convert GBTC into a spot bitcoin ETF. They deserve your support,” Michael Saylor, CEO of MicroStrategy, argued this week and invited Twitter followers to demand that US regulators give the plans the green light.
Such a move would be unprecedented in the United States, where the Securities and Exchange Commission (SEC) has lagged behind authorities in other countries in approving a Bitcoin spot-based ETF.
Despite the turmoil, Grayscale CEO Michael Sonnenshein remained as bullish as ever on GBTC and institutional demand for Bitcoin exposure.
“I think some investors are probably waiting for things to settle down,” he said told CNBC in an interview on Dec.
“I think as things settle down and crypto starts to take hold, you will see some of these more institutional buyers step in, and some have already indicated that they are actually starting to buy at these levels.”
Purpose Bitcoin ETF Records Daily Record Buying
Across the border in Canada, the world’s first bitcoin spot ETF has benefited in turn from the week’s trading conditions.
Related: Why the World Needs a Spot Bitcoin ETF in the US: 21Shares CEO Explained
The Purpose Bitcoin ETF added 6,903 BTC in a single day on May 13, marking the largest single-day buy-in in its history.
Purpose now manages 41,620 BTC, surpassing its previous high of 36,322 BTC set in March of this year.
The jump came with the launch of Australia’s first spot ETFs, one of which, the Cosmos-Purpose Bitcoin Access ETF (CBTC), bought shares in the Canadian Purpose offering.
Important to note: Two Bitcoin ETFs launched in Australia yesterday. One of them, the Cosmos-Purpose Bitcoin Access ETF ($CBTC), gains access to BTC by buying shares of the Canadian #Bitcoin Purpose Spot ETF. The latter now essentially reflects two ETFs.
— Jan Wüstenfeld (@JanWues) May 13, 2022
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https://cointelegraph.com/news/canadian-bitcoin-etf-adds-6-9k-btc-in-one-day-as-gbtc-discount-hits-record-low Canadian Bitcoin ETF adds 6.9k BTC in one day as GBTC rebate hits record low