The GBTC premium reaches a -34% historical low as cryptocurrencies "cake out" tokens

The GBTC premium reaches a -34% historical low as cryptocurrencies “cake out” tokens – Mail Bonus

The largest Bitcoin investment company, Grayscale Bitcoin Trust (GBTC), is currently trading the largest discounts on the local market to date.

Data from the Coinglass chain analysis resource show that GBTC shares have fallen by 34% against BTC / USD on the main stock exchanges as of 17 June.

GBTC is suffering from a downturn in the market

Amid the continuing turmoil in DeFi spilling over to the cryptocurrency market, conditions have worsened for investors large and small.

The latest figures now show that institutions have finally failed to avoid infection and GBTC, which has already been doing poorly, has reached new lows.

The GBTC premium, which has long been misnamed because the fund’s shares actually cost less than Bitcoin itself, is around the lowest value in history. On June 17, this was traded at 34.2% cheaper than the Bitcoin spot price (also known as net asset value or NAV).

A sharp downturn followed a similar dip in local markets where BTC / USD retested $ 20,000 twice.

GBTC premium against assets against BTC / USD chart. Source: Coinglass

As Grayscale seeks US regulators’ permission to convert GBTC into a Bitcoin spot on the Price Exchange-Trade Fund (ETF), conditions continue to look unfavorable for cryptocurrency products amid increasing government attention following the collapse of Terra and Celsius.

While the company continues to maintain a good outlook, GBTC’s performance has not gone unnoticed by commentators, who point out to regulators what they consider to be an inaccurate risk assessment.

Bitcoin spot ETFs are still banned in the United States due to investor protection concerns, allowing countries such as Canada and Australia to gain an advantage over early carriers.

“Without ETF approval, GBTC could go for a -100% premium to NAV,” Vijay Boyapati joked this week.

Hayes names D-Day for the bottom of the cryptocurrency market

This situation has not been helped due to the reported liquidity problems of many cryptocurrency funds with exposure to those already facing serious losses. Embattled Three Arrows Capital (known as 3AC), for example, is the largest owner of GBTC with over 38.8 million shares.

Related: These 3 metrics indicate that the Bitcoin price crash is not over

As 3AC does not meet the requirements for margin calls this week, a significant gap is opening up between GBTC and its competition. ProShares Bitcoin Strategy ETF (BITO), the first US approved ETF based on Bitcoin futures, has even added BTC to its assets under management in recent days.

For Arthur Hayes, former head of BitMEX derivatives, some of the biggest names in cryptocurrency investing are facing “River Styx” moments.

In his latest blog post on June 17, Hayes took a fresh hit on the fate of difficult projects for Celsius, Terra and others.

“As this group of companies is forced to throw out any asset that is not locked into any long-term return strategy, look below,” he predicted.

“Corporate sales of all liquid assets in their loan books will take place so that these credit companies can return assets to their depositors.

After previously calling for a bottom of $ 1,000 for Ether (ETH) and $ 25,000 for Bitcoin, Hayes admitted that the reality was much worse.

The coming weekend of July 4, he added, should provide ideal conditions for the national economy bottom, especially when the second quarter is over.

„30. June to July 5 will be a wild journey on the side, “the blog post continues.

“$ 25,000 to $ 27,000 Bitcoin and $ 1,700 to $ 1,800 Ether My bottom line was in pieces. How low can we go? I believe we will find out this fateful weekend. “

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