GrayScale Bitcoin Trust (GBTC) Premium Tanks to -19% As More Competition Weighs In 

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For the past two months, Grayscale Bitcoin Trust (GBTC) has traded at a negative premium to the net asset value (NAV). GBTC historically traded at a high premium relative to the underlying, averaging a 15% premium since the fund’s inception. This was largely due to GBTC being the only investment vehicle easily accessible to institutional investors. On Thursday, the trust saw its premium plummet to a new all-time low of -18.92%. With Canadian competitors rapidly taking up market share and U.S. ETFs just on the cusp of approval, institutional demand for Grayscale’s investment product seems to be drying up. Canada’s Purpose Bitcoin ETF, for instance, hit $1.4 billion assets under management (AUM) when Bitcoin surged to its all-time high earlier this month. Despite being dwarfed by GBTC’s much larger $32 billion AUM, the Canadian fund’s trajectory since inception (2 months) is nonetheless impressive. The U.S. Securities Exchange Commission (SEC) also…

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