Gbtc Premiums Show Institutional Investors Accumulated Bitcoin In February

MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security. Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more. Grayscale Bitcoin Trust shares split on Friday, January 26th 2018. The 91-1 split was announced on Thursday, January 11th 2018. The newly minted shares were distributed to shareholders after the closing bell on Thursday, January 25th 2018. An investor that had 100 shares of Grayscale Bitcoin Trust stock prior to the split would have 9,100 shares after the split.
To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research. A 30% premium for Bitcoin on Grayscale is substantially high, considering that the premium was hovering at around 7% throughout January. Grayscale is actually backed by Bitcoin! This guarantees the safety of the product and also leads to an increase in the Bitcoin price as GBTC buys up the market.

There is not enough analysis data for Grayscale Bitcoin Trust . This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction. Also, that lack of competition allows GBTC to charge high fees. A couple of Bitcoin ETFs would add competition to the industry which would drive down fees. Grayscale Bitcoin Trust has received 69.82% “outperform” votes from our community. You have already added five stocks to your watchlist. Upgrade to MarketBeat Daily Premium to add more stocks to your watchlist. Grayscale Bitcoin has 1,920,000 shares outstanding.

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The company’s upcoming earnings report date is not yet available.

They have an excellent, easy to use chart. Also, it should be pointed out that GBTC functions like a traditional financial product in that it doesn’t trade during off-hours. That’s opposed to Bitcoin which trades 24/7. Not only would you experience the 85% drawdown in Bitcoin price, you would also experience the drawdown from a 100% premium to a 20% premium.

About Grayscale Bitcoin Trust Btc

It would be easy to demonize Grayscale as a strange financial product that costs too much and encourages people to not take custody of their own Bitcoin. However, altogether Grayscale is a net positive for the Bitcoin ecosystem. If you buy GBTC during record low premiums over spot, you might be able to make money by selling later when the premium rises. Conversely, if you buy GBTC when the premium is high, you might lose money if you sell when the premium is lower. So while Grayscale does provide some tax advantages, it’s altogether better to just own the underlying Bitcoin. The Grayscale trust buys Bitcoin and they’ve been in the news recently. Reports have emerged which show that Grayscale is buying up more Bitcoin than all of the miners are producing since the halving.

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. That values the Bitcoin price at over $13,000, given that nearly one-thousandth of a Bitcoin is priced at $13.48. That leaves with a premium of $3,000 for accredited and institutional investors. GBTC trades at a premium over the Bitcoin spot price. As this article is being written, one share of GBTC trades for $12.82. Since 1,000 shares of GBTC is equal to a single Bitcoin, we can see that buying one Bitcoin’s worth of GBTC will cost $12,820. Bitcoin’s spot price is currently $11,165.

Grayscale Bitcoin News

On margin trading platforms, the prices of cryptocurrencies including Bitcoin, Ethereum, and XRP can be easily swayed because traders are using relatively high leverage to trade. Another advantage of an ETF is that it would increase competition. Currently, GBTC is the only legally allowable way to trade BTC via the traditional financial market. This is part of the reason why it trades at such a premium. The easiest way to track the price of GBTC is via TradingView.

• This helps explain why a major Bitcoin whale said that the initial upsurge of bitcoin from the $6,000s to $9,000s was manipulated.
• The Grayscale trust buys Bitcoin and they’ve been in the news recently.
• This is used by investors to assess a stock’s market price relative to its earnings.
• That gives us roughly a 15% premium to buy GBTC vs. Bitcoin.
• GBTC trades at a premium over the Bitcoin spot price.

GBTC trades at a premium over the spot price of BTC. The Grayscale Bitcoin Trust is important because it’s the only way to “buy” Bitcoin within the confines of the traditional financial system. Bitcoin bought via GBTC can be added to an IRA which can provide investors with certain tax advantages. View our full suite of financial calendars and market data tables, all for free. Grayscale Bitcoin Trust ‘s stock was trading at $9.26 on March 11th, 2020 when COVID-19 reached pandemic status according to the World Health Organization . Since then, GBTC stock has increased by 272.2% and is now trading at $34.47. View which stocks have been most impacted by COVID-19. For that reason, margin trading platforms are easier to manipulate than spot exchanges. This helps explain why a major Bitcoin whale said that the initial upsurge of bitcoin from the $6,000s to $9,000s was manipulated. Reached a fresh high at $1.1 billion, surpassing $1 billion for the third time in history.

That gives us roughly a 15% premium to buy GBTC vs. Bitcoin. $3 billion in assets under management, GBTC has been the go-to method of investing into the cryptocurrency market by accredited and institutional investors for several years. Grayscale Bitcoin Trust saw a decrease in short interest in the month of November. As of November 15th, there was short interest totaling 1,212,100 shares, a decrease of 77.7% from the October 31st total of 5,447,300 shares. Based on an average daily trading volume, of 11,671,300 shares, the short-interest ratio is presently 0.1 days. View Grayscale Bitcoin Trust ‘s Short Interest.
Since CME is used by accredited investors in the U.S., it showed a high level of accumulation in the month of February. When comparing GBTC vs. Bitcoin, Bitcoin comes out ahead in terms of fees, price , and security . Grayscale is nested within the traditional financial system. If that goes down, is shut down, experiences problems, etc., you lose access to your GBTC. These problems don’t mean that GBTC is a scam or some kind of horrible financial product, it’s not. However, buying Bitcoin is always a better option than buying a financial product. © 2021 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed.

However, if possible it’s still better to buy and hold your own Bitcoin versus buying GBTC. Also, GBTC is available through traditional brokerages rather than a crypto exchange. Thus Grayscale is a good deal for someone who doesn’t know how to set up a Bitcoin wallet but who believes in Bitcoin and wants to buy it without the responsibility of securing their own BTC. In the past three months, Grayscale Bitcoin Trust insiders have not sold or bought any company stock.

Who Are Some Of Grayscale Bitcoin Trust Btc’s Key Competitors?

The company was founded on September 13, 2013 and is headquartered in Stamford, CT. On the other hand, when you buy Bitcoin, you directly buy the cryptocurrency Bitcoin and not shares in a Bitcoin investment trust. GBTC is an investment trust or fund which buys and secures Bitcoin on your behalf. When you buy GBTC, you are buying shares of the trust. MarketBeat’s community ratings are surveys of what our community members think about Grayscale Bitcoin Trust and other stocks. Vote “Outperform” if you believe GBTC will outperform the S&P 500 over the long term. Vote “Underperform” if you believe GBTC will underperform the S&P 500 over the long term. This is used by investors to assess a stock’s market price relative to its earnings. According to Adaptive Fund’s Willy Woo, on-chain activity of Bitcoin increased as the Bitcoin price surpassed $10,000.

Sign-up to receive the latest news and ratings for Grayscale Bitcoin Trust and its competitors with MarketBeat’s FREE daily newsletter. TipRanks is a comprehensive investing tool that allows private investors and day traders to see the measured performance of anyone who provides financial advice. According to Wall Street analysts Grayscale Bitcoin’s price is currently Overvalued. Not enough analysts have published a price target to provide an average price target. Read more about Ethereum exchange here. Increased from early January to February, from around 350,000 to 500,000, showing user activity increased during the two months. Surged from 241,000 BTC in the last week of December 2019 to 468,000 BTC in the second week of January 2020. That is a 94% increase in spot volume, in a span of just three weeks. As of March, the premium has dropped to around 13% — still high considering the significant decline in the Bitcoin price over the past two weeks.

Nevertheless, someone unfamiliar with technology can still appreciate the monetary benefits of Bitcoin and want some exposure to BTC. For now, Grayscale provides a way to gain that exposure in a way that everyday people can understand and trust. Because the premium changes based on supply and demand, it’s important to account for how it can affect your returns. That’s good for Grayscale and good for Bitcoin.