The GBTC Premium Explained
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.
Crypto ETFs / ETNs / Trusts / Funds / etc.
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.
The GBTC / ETCG Indicator is Mighty Bullish
When GBTC and ETCG trade at a premium to the underlying assets, it is generally a sign that crypto is bullish.
Bitcoin Cboe ETF is Back
Cboe resubmitted its joint proposal with VanEck and SolidX for a Bitcoin ETF after withdrawing it during the government shutdown.
GBTC Premium and NAV Almost Converged in Dec, That Has Historically Been a Bullish Sign
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 Delayed; New Launch Date Will be Announced in Early 2019
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.
NYSE Chairman Bullish on Bitcoin and Digital Asset Longevity
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 / NASDAQ Bitcoin Futures Product Announced
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 Launch Delayed Until Jan 24, 2019
Bakkt is now targeting a launch date of January 24, 2019. This was delayed from the original December 19, 2018 launch date.
FINRA Reporting on Digital Assets Has Some Broker-Dealers Avoiding Crypto
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.
SEC BTC ETF Comments Round Ends Nov 5; Decision Not Imminent
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.