The Grayscale GBTC premium over market prices may be one of the true signals for investment interest in Bitcoin (BTC).
GBTC Shares Signal Institutional Interest
The fund, which holds 0.1 BTC in each share, has allowed mainstream investors to get exposure to BTC, though without the technicalities of holding their own coins. GBTC has been available to institutional investors, and more recently, as a retail investment through brokerage accounts.
A low GBTC premium means decreasing interest or market corrections for Bitcoin. In 2019, the premium peaked during the rally from April to July, then shrinking again. At one point, GBTC shares exposed traders to BTC at a discount.
I'd be willing to bet that the GBTC premium will be crushed to single digits on the week of July 15 2020 and October 21 2020
— nic carter (@nic__carter) January 16,…
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