The Grayscale Bitcoin Trust (GBTC) has been one of the main ways to access the cryptocurrency market for most institutional investors since 2017. Analysts assured that with the advent of digital gold futures ETPs, the public’s attention switched to them, and the fund’s discount began to grow to unprecedented values.
According to researchers at Arcane Analytics, BTC can be purchased for 36% less than spot trading, at around $12,500. Discounts against GBTC’s net asset value (NAV) have reached record highs, making buying bitcoin through the fund much more advantageous than using an asset in the traditional style. The current state of affairs and the lack of cash inflows to the fund indicated that now is the ideal time to invest in bitcoin for large players.
A high discount against NAV could be a good opportunity when the price of the cryptocurrency is back in an uptrend. The current discounts will give an excellent bonus to their contributors. However, some investors prefer to avoid GBTC given the fact that the minimum investment threshold is $50,000.
The experts noted that the indicators of the inflow of funds into the cryptocurrency market from institutionals are now at their lows, given the low trading volumes of ETP and BTC and Ethereum (ETH) funds in both the US and Canada. According to them, the crisis will continue until the first results of tight monetary policy in the fight against rising inflation appear in the United States.