If that happened, according to one analyst, the shares might quickly climb back toward the price of the underlying bitcoin – allowing traders to recapture the discount as a profit while still booking any gains from the cryptocurrency itself.
They were subject to a lockup period of six months, but after that, they could then sell their shares for a profit in the open market to lock in any gains from bitcoin and capture the premium as an extra kicker.
Then in March, as bitcoin’s 2021 rally stalled and more competition arrived from bitcoin ETFs in Canada, Switzerland and elsewhere, GBTC began trading at a discount to its net asset value, a disincentive for new institutional buyers.
Grider’s view assumes Grayscale is successful in converting the trust into an ETF, which is far from assured.
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