Canadian Bitcoin ETF adds 6.9K BTC in one day as GBTC discount hits record low
The Canadian Bitcoin Exchange-Traded Fund (ETF) has seen a significant surge in interest as investors look to speculate on the cryptocurrency market. With its daily volume reaching over 6,900 BTC and increasing by almost 300% since October, GBTC could soon be trading at an all-time low discount.
The “gbtc discount chart” is a cryptocurrency-related term that refers to the price of Bitcoin Investment Trust shares. The GBTC discount hit a record low this week, adding 6.9K BTC in one day.
Bitcoin’s (BTC) drop to $24,000 has cost its biggest institutional investor more than the ordinary hodler.
Grayscale Bitcoin Trust (GBTC) is presently selling at a roughly 31% discount, according to data from on-chain monitoring site Coinglass on May 13.
Investors are “waiting for things to calm down,” according to Grayscale CEO.
GBTC’s embryonic comeback has fallen flat on its face — for the time being — amid continuous market instability.
The so-called GBTC premium, which has been in negative territory for a long time and so represents a discount in actuality, has now dropped to its lowest level ever.
The discount was 30.6 percent as of May 13, suggesting that GBTC shares were over a third cheaper than the Bitcoin spot price (referred to as net asset value, or NAV).
The statistics represent a significant reversal for the premium, which had risen to a 21 percent discount in mid-April.
GBTC, on the other hand, has long traded at a discount as Grayscale strives to convert it to an exchange-traded fund (ETF).
“Setting up GBTC required clarity and conviction, and Grayscale is exhibiting bravery and dedication in their drive to turn GBTC into a Spot Bitcoin ETF.” MicroStrategy CEO Michael Saylor said this week that the initiatives “deserve your support,” encouraging Twitter followers to push that US authorities approve the plans.
Such a move would be unique in the United States, where the Securities and Exchange Commission (SEC) has been slow to approve a Bitcoin spot-based ETF, behind other nations’ regulators.
Meanwhile, despite the turmoil, Grayscale CEO Michael Sonnenshein remained upbeat about GBTC and institutional demand for Bitcoin exposure.
In an interview with CNBC on May 12, he said, “I believe some investors are certainly waiting for things to calm down.”
“I do think when things settle down and crypto starts to find its footing you will see some of those more institutional buyers starting to step in and some have already indicated that they are in fact starting to take buys at these levels.”GBTC premium vs. asset holdings vs. BTC/USD chart. Source: Coinglass
The purpose Bitcoin ETF is seeing record daily purchases.
The world’s first Bitcoin spot ETF, which is based in Canada, has profited from the week’s trading circumstances.
Why does the world need a spot? The CEO of 21Shares describes the Bitcoin ETF in the United States.
On May 13, the Purpose Bitcoin ETF added 6,903 BTC in a single day, the most single-day buy-in in the fund’s history.
Purpose currently manages 41,620 BTC, surpassing its previous record of 36,322 BTC established in March of this year.
BTC holdings of the Bitcoin ETF versus. BTC/USD chart. Credit: Coinglass
The increase came when Australia’s first spot ETFs were launched, one of which, the Cosmos-Purpose Bitcoin Access ETF (CBTC), purchased shares in the Canadian Purpose offering.
Important to note: Two Bitcoin ETFs were launched in Australia yesterday. The Cosmos-Purpose Bitcoin Access ETF ($CBTC) is purchasing shares of the Canadian #Bitcoin Purpose spot ETF to get exposure to BTC. As a result, the latter now reflects two ETFs.
May 13, 2022 — Jan Wüstenfeld (@JanWues)
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The “gbtc discount explained” is the lowest price for GBTC since its inception. The price of GBTC has increased by 6.9K BTC in one day.