Topic: [2017-07-29]Bitcoin is Trading at Extreme Premium in Stock Market (Read 5412 times)

This is a very interesting development since we are nearing the start of the scaling solution come August 1 and yet it seems that the market has already greatly discounted what can happen in the said date. Bitcoin is now enjoying a relatively high price compared last week when people are enveloped by fear and unnecessary FUD-induced apprehensions.

Right now, I can sense that there are groups of people who are willing to snap up Bitcoin if it would go lower even a little. I am hoping that by the time the first phase of the scaling implementation is finished, Bitcoin can really be rampaging in volume and value.

We should be happy that traders and investors of stocks and forex are now starting to take notice of Bitcoin and they already have the medium where to invest with the digital currency.

It has indeed been a while since they announced the review, but I think they are stretching it as far as possible on purpose. I don't expect any sort of statement regarding the ETF any time soon, as the US government at some point will be going to auction off their BTC-E treasury. A negative announcement would likely translates into a lower market price, and thus they would be getting less for the coins their are going to put up for auction. It's somewhat of a conspiracy theory, but this all might be well planned. Everything happens for a reason, where one service/platform has been going down after the other. I don't believe it's coincidence. In that regard, I expect more shut downs to follow in the coming months.

The trade volumes would be interesting. And I don't understand one thing. If the GBTC is trading at such a premium, then what prevents the managers from buying more BTC from the exchanges and converting it to GBTC shares?

What happens when they say, "ok send it to me address, I'd like to have my owned coins" ?

Nothing to be surprised about. Bitcoin is extremely hot and profitable on so many fronts. It has been outperforming basically every stock and asset without any problems. I just wonder why the SEC has not yet made a decision about the ETF they granted a review. If they had no interest in changing anything, they would likely reject it for the second time, but thus far that hasn't been the case. An approval would definitely give the already bullish market an extra push forward.

Bitcoin is Trading at Extreme Premium in Stock Market

The demand toward Bitcoin is also increasing at a rapid rate in the public stock markets. Some ETFs and instruments including Bitcoin Investment Trust are being traded with extreme premium rates.

Barry Silbert-led Digital Currency Group’s subsidiary company Grayscale Investments operates one of the most frequently traded and popular publicly quoted securities based on Bitcoin price.

Each share of Bitcoin Investment Trust (GBTC) represents 10 percent of Bitcoin price and at the time of writing, GBTC is being traded at $417.

The public stock market

n the US stock market, accredited traders and institutional investors are buying into Bitcoin with instruments such as GBTC.

Although many investors have moved onto regulated trading platforms, such as Kraken, Coinbase’s GDAX and the Winklevoss twins’ Gemini, a large portion of accredited investors still rely on publicly quoted Bitcoin securities such as GBTC to invest in the digital currency.

Currently, the share price of GBTC demonstrates a staggering 48.92 percent premium rate for investors in the public stock market. The global average Bitcoin price, calculated by averaging the price of each Bitcoin exchange market, including the US, South Korea, Japan and China at the time of writing is $2,767.

In the public stock market, through instruments such as GBTC, Bitcoin is being traded at well over $4,000.

https://cointelegraph.com/news/bitcoin-is-trading-at-extreme-premium-in-stock-market