You might hear that GBTC (or ETCG) has a “premium.” This is a reference to the difference between the value of the holdings of the trust vs. the market price of the holdings.
This section covers cryptocurrency ETFs, ETNs, trusts, funds, and other such products. For example, this section includes GBTC.
NOTE: The Bitcoin Investment Trust (GBTC) is a trust that holds Bitcoin. Shares of the trust can be purchased on the stock market. The trust holds about 170,000 bitcoins. Each share represents about .092 bitcoins (so if you own 10 shares, you own contracts that represent just under 1 bitcoin). In other words, GBTC isn’t a cryptocurrency. Instead, it represents ownership of a cryptocurrency held in a trust by the Greyscale investments.
When GBTC and ETCG trade at a premium to the underlying assets, it is generally a sign that crypto is bullish.
Cboe resubmitted its joint proposal with VanEck and SolidX for a Bitcoin ETF after withdrawing it during the government shutdown.
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.
Bakkt’s Jan 24th 2019 launch date has been pushed back again. The new launch date is not set, but the plan is to announce it in early 2019.
Chairman of the New York Stock Exchange NYSE Jeff Sprecher expressed the idea that “bitcoin and other digital assets are here to stay” at a recent CoinDesk Consensus: Invest conference.
VanEck’s ETF might be in limbo with the SEC, but they are moving forward with crypto by partnering with NASDAQ to “bring a regulated crypto 2.0 futures-type contract” to the market.
Bakkt is now targeting a launch date of January 24, 2019. This was delayed from the original December 19, 2018 launch date.
FINRA has been “encouraging” broker-dealers to report details about digital assets. It is good to have formal rules, but some broker-dealers are avoiding crypto to avoid the soft requirements.
November 5th is the last day to provide comments on the Bitcoin ETF to the SEC. The decision on the ETF will then come later.