Grayscale Bitcoin Premium Flips Negative as BTC Stays Below $50,000

The gap between the GBTC share price and the implied price of the underlying bitcoin has collapsed to a 4% discount from a 35% premium late last year.

AccessTimeIconFeb 26, 2021 at 8:41 p.m. UTC
Updated Sep 14, 2021 at 12:18 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

The largest public bitcoin trust is facing an unusual situation: Its share price is dropping faster than the underlying cryptocurrency.

  • Historically, the Grayscale Bitcoin Trust (GBTC) trades at a premium to bitcoin (BTC) itself. But that premium turned into a discount this week, with GBTC closing at a price nearly 4% lower than the market value of the underlying asset on Thursday.
  • In mid-December, GBTC shares traded at more than a 35% premium, according to data from YCharts, a reminder that price action for GBTC doesn't perfectly match bitcoin's own price action by any means.
  • NOTE: Grayscale is owned by Digital Currency Group, CoinDesk's parent company.
  • Grayscale's bitcoin trust isn't the only one trading at a discount, however. 3iQ's Canadian Bitcoin Fund (QBTC), although a smaller fund than Grayscale, was also trading at a roughly 4% discount to its underlying asset, according to market data from CryptoQuant.
  • GBTC and QBTC are trading at discounts as bitcoin itself is selling off, dropping to below $45,000 Friday afternoon before slightly recovering to above $48,000.
  • At last check, BTC was trading at $46,877, based on CoinDesk's Bitcoin Price Index, with a year-to-date gain just below 60%.
  • Analysts have speculated the shrinking premium might be due to reduced demand for bitcoin, or due to increasing competition among providers of bitcoin-focused exchange-traded products.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.