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Topic: Grayscale Premium/Discount (Read 149 times)

full member
Activity: 1708
Merit: 125
www.positivebetting.com
January 22, 2021, 08:37:09 AM
#4
If you wanna learn everything you need to know about GBTC then check out my blog: https://forrestvisions.com/blog/difference-between-gbtc-and-btc/


Hope this helps Smiley

Wow, what an excellent resource you've taken the time to create. It will also help people who want to diversify into more traditional vehicles such as investment trusts.

I keep an eye on trusts for the discount, for example, I prefer to get exposure to Tesla and Amazon through trusts such as Scottish Mortgage (SMT) and US Growth (USA).

However, when I look at the Net Asset Value on these, I can see the correlation to stock market sentiment in general, but I can't see why the Grayscale premium tanked on 21st December when Bitcoin itself kept on rising. It honestly must be some sort of quirk to do with xmas trading.

What do you reckon?

I will check it out later today because that does seem interesting. I know it's based on supply and demand, but I will see if I can dig something out that could have played a role in that.
member
Activity: 224
Merit: 36
January 21, 2021, 07:05:17 PM
#3
If you wanna learn everything you need to know about GBTC then check out my blog: https://forrestvisions.com/blog/difference-between-gbtc-and-btc/


Hope this helps Smiley

Wow, what an excellent resource you've taken the time to create. It will also help people who want to diversify into more traditional vehicles such as investment trusts.

I keep an eye on trusts for the discount, for example, I prefer to get exposure to Tesla and Amazon through trusts such as Scottish Mortgage (SMT) and US Growth (USA).

However, when I look at the Net Asset Value on these, I can see the correlation to stock market sentiment in general, but I can't see why the Grayscale premium tanked on 21st December when Bitcoin itself kept on rising. It honestly must be some sort of quirk to do with xmas trading.

What do you reckon?
full member
Activity: 1708
Merit: 125
www.positivebetting.com
January 21, 2021, 05:48:47 PM
#2
If you wanna learn everything you need to know about GBTC then check out my blog: https://forrestvisions.com/blog/difference-between-gbtc-and-btc/


Hope this helps Smiley
member
Activity: 224
Merit: 36
January 21, 2021, 03:20:03 PM
#1
I've been getting more curious about Grayscale due to threads on here, and especially because it is an investment trust company.

Therefore if the shares are popular, then they can cost more than the total Bitcoin it holds, known as a premium (it also goes the other way known as a discount).

I've got a vague idea how this works because I keep an eye out and buy traditional shares investment trusts when they dip into a discount. Many people also trade this variance actively.

You can see a graph of this here:

https://ycharts.com/companies/GBTC/discount_or_premium_to_nav

However, looking at that chart, I might naively think that the institutions and special investors who can afford Grayscale started taking profit on 21st December. So what happened?

Selling off to buy Christmas presents for the entire company?
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