Historically it has been a bullish sign for crypto when GBTC has lost most of its premium. We don’t get a run each time this happens, but we do tend to see this happen before we get a run.
I won’t go into details on this post, instead I will simply say that it has historically been the case that crypto was a better bet when GBTC’s premium to NAV ratio was low, and it has historically been a good time to take profits when the spread was high.
Recently the premium has almost disappeared (it bottomed in Dec, but it is still low), so the hope would be that this is one of those times when that implication is crypto is a good bet 🙂
Taking advantage of the premium: If you can time GBTC or ETCG just right, they historically provide better returns than crypto itself. This is because these can trade at a premium at times. The concept being that you don’t just get the increase from GBTC or ETCG going up, you get the increase of the asset going up plus the premium increasing! That said, timing these right is very high level, so be careful and make sure to read up on what I have to say about them so you know what they are up against. Here is links to our GBTC page and ETCG page (please read the warnings so you understand the dangers of the premium in a bear market as a HODLer and the fee schedule and such; these are risky assets for inexperienced traders and getting it right often is partly a matter of luck).
"GBTC Premium and NAV Almost Converged in Dec, That Has Historically Been a Bullish Sign" contains information about the following Cryptocurrencies:
Crypto ETFs / ETNs / Trusts / Funds / etc.