scroll

Tackling Bitcoin

Advanced Search

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

Ask a question

The Latest Q&A

Question asked 12/04/2021

Tackling Bitcoin

Good afternoon James (and team),

There was a segment regarding Grayscale Bitcoin Trust in this morning's (6th April) email as quoted

"Since listing, the Trust has consistently traded at a premium to it’s underlying assets by as much as 40%, call it a safety premium however this has changed over the past week with the trust now trading at around an 8% discount. This is a bearish indicator for Bitcoin."

Grayscale has stated that it is planning to convert its Bitcoin Trust GBTC into an American ETF, could this have caused the discrepancy between GBTC price and net asset value?

Is there a reason that Institutions would buy into Grayscale, as compared to the three Canadian ETFs already present?

Purpose Investment's Bitcoin ETF (BTCC)

Evolve Bitcoin ETF (EBIT)

Cl Galaxy Bitcoin ETF (BTCX)

Thank you again,

Kai

Answer

Hi Kai,

I think you’ve hit the nail on the head in terms of the Grayscale Trust, until recently, it was the only real place to buy Bitcoin through a fund structure that had all the safe guards in place, now there are many ETFs that are emerging offering exposure to bitcoin without the issue of premiums and discounts. I m certainly not an expert in how best to trade Bitcoin however ETF’s are the simplest structure hence why they are emerging in large numbers. We actually had a company through the office a few weeks ago looking to IPO a Bitcoin Exchange in Australia that looked interesting.

chart

Bitcoin

LAST UPDATED 09/04/2021 16:42

Latest Reports

Afternoon report 19/04/2024

The Match Out: Middle East tensions see risk off for equities

Shares tracked pre-market futures lower early in our session before headlines of a further escalation in the Middle Eastern conflict caused another wave of selling took the market to 2 month lows. Energy found support with oil cracking $US90/bbl again which was also a concern for those positioned for inflation to roll off. Until midday, traders had no interest in taking risk in today’s session but the afternoon painted a different picture. The ASX closed well off the intraday lows with many sectors rallying more than 0.5% between midday and the end of trade. Despite the Friday afternoon fight, the local market had its worst week since September, falling -220pts / -2.83%.