GBTC “PREMIUM” DECIDES BELOW -37%
Bitcoin market sentiment showed an improvement when it was reported late last week that BlackRock, the world’s largest asset manager, had applied for a spot Bitcoin ETF.
While the approval of a Bitcoin ETF is not yet allowed in the United States, some argue that having a company like BlackRock submit an application has a higher chance of being approved.
In the meantime, signs of optimism beyond sentiment have become more apparent, with the purchase of GBTC at a large discount to the spot Bitcoin price.
According to CoinGlass, this discount, or negative “premium,” is used to describe the price of GBTC stock, which currently stands at -36.6%.
Despite still being heavily discounted, GBTC is currently trading closer to zero than most times this year. For example, on June 13, the discount went up to -44%.
If the BlackRock ETF is approved, the real winner here will be GBTC,” Adam Cochran, a partner at venture capital firm Cinneamhain Ventures, wrote in a Twitter comment over the weekend.