Grayscale Bitcoin Trust is trading 37% higher than Bitcoin, bull signal?

29 May, 2019
by David Borman
Grayscale Bitcoin Trust is trading 37% higher than Bitcoin, bull signal?

It has been noted on twitter that the value of the Grayscale Bitcoin Trust (GBTC) stock is currently trading at a price that values the company's Bitcoin at $11,600/BTC, a premium of about a 37% over the actual price of Bitcoin. This means it is plausible institutional investors are willing to pay this premium as they have increasing faith in the asset as the market continues to grow.

As another user goes on to explain, this is because each share of this stock = about .00098 BTC, which at current prices values Bitcoin itself well over $11,000:

At the time of this writing, GBTC is actually up to $11.64, and doesn't appear to be slowing yet:

GBTC Chart provided by Tradingview

The cause and meaning of this is relayed by yet another user on twitter, who points out that this is likely people putting the stock into retirement accounts but that this shows a great deal of faith in the market:

It is likely that the optimism surrounding this financial product is deeply tied to the recent rise in the regular Bitcoin marketplace. If more traditional investors are willing to take on an inflated price of the underlying asset, then it could be another good sign that the crypto world is gaining a deeper acceptance. Will this trend continue? Stick with Chepicap for all updates!

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