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Fund units are depreciating faster than bitcoin, which has lost 9% since the beginning of the year
Units of the Grayscale Bitcoin Trust fund (ticker symbol GBTC) have fallen in price by 17% since the beginning of the year, outperforming bitcoin (minus 9%). As a result, the difference between the value of GBTC units and the fund’s main asset (Bitcoin) has reached a record 27%, according to CryptoQuant, an analytics company.
Units of the Grayscale Bitcoin Trust fund have a deferred redemption mechanism. GBTC holders must hold their shares for six months before they can be sold.
On January 19, Bitcoin is trading at $42.1 thousand. Over the month, the cryptocurrency has fallen in price by 10%, and its capitalization has decreased to $800 billion, according to CoinGecko. On January 10, the price of the asset fell below $40,000 for the first time since September. Last November, Bitcoin hit an all-time high above $69,000.
The Grayscale Bitcoin Trust is similar to an ETF in that it is backed by Bitcoin and matches its price. It is not registered with the SEC, so only accredited investors have access to it.
Grayscale Investments is a digital asset manager that allows accredited US investors to purchase cryptocurrency investment products in a regulated environment through traditional market instruments.
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