Following the launch of Canada’s first Bitcoin ETF, Grayscale’s shares in Bitcoin Trust traded for a month for the first time at a discount compared to BTC.
For the first time, Grayscale’s shares in Bitcoin Trust were traded at a discount compared to spot BTC for a month.
What does it mean?
Rafael Schultze-Kraft, CTO of blockchain analytics provider Glassnode, stated that the corporate fund manager’s shares in the Bitcoin Trust were traded at an average conceptual discount of -6% in March.
He noted that Grayscale’s reduction in BTC stocks coincided with the launch of Purpose Bitcoin ETF in Canada, which has accumulated around $ 940 million worth of 16,000 BTC since its launch in late February.
— Rafael Schultze-Kraft (@n3ocortex) April 1, 2021
Two Bitcoin and crypto ETFs were also approved by the Brazilian Securities and Exchange Commission earlier this month.
Stating that Trust’s Bitcoin stocks have remained stable in recent weeks, Schultze-Kraft noted that this means: “It’s not surprising because it doesn’t make much sense to subscribe to create new GBTC shares as long as existing shares are traded at a discount.”
Grayscale allows accredited investors to create stocks representing BTC or other digital assets by depositing fiat. Grayscale then deposits the relevant amount of crypto into their Trust, and investors can sell their shares using over-the-counter or OTC markets after facing a six-month lockout period.
Grayscale currently has $ 45.6 billion in assets in 13 Trust funds, following the launch of five new Trust funds last month. The new Decentraland (MANA) Trust represents $ 17.4 million, Livepeer (LPT) with $ 12.3 million, Filecoin (FIL) with $ 8.5 million, Basic Attention Token (BAT) with $ 3.7 million and $ 3.5 million Chainlink (LINK) follows.
While all of Grayscale’s newly supported assets have made significant gains in recent weeks, Filecoin’s performance has risen 105% last week to the top of the list, according to CoinMarketCap.