As CEO Sonnenshein reiterates ambitions to turn Grayscale crypto funds into ETFs, evidence suggests that money is coming back into GBTC. As its premium over spot pricing increases to its highest level since May, the Grayscale Bitcoin Trust (GBTC) is matching positive sentiment in Bitcoin (BTC).
According to data from analytics firm Bybt, the so-called Grayscale premium was -5.88 percent on Tuesday. On May 25, it was closer to zero than it has been in a long time.
The premium on the GBTC has dropped by more than 6%.
That was a week after Bitcoin began a significant price decline, which has now begun to ease this week.
Since Bitcoin's 55 percent price drop, GBTC has been the subject of significant speculation, with the unlocking of GBTC shares apparently increasing selling pressure.
Nonetheless, buying activity has reappeared this month, with well-known names adding to their tranches and boosting their Bitcoin exposure.
The Grayscale premium – the difference between the trading price of GBTC and the net asset value (NAV) of its BTC assets — has risen in lockstep, returning to zero after a long period in the negative.
With the majority of the unlockings completed, the story of Bitcoin price repression has all but vanished.
Trader and analyst Nick Hellmann reacted on the recent adjustments, saying, "$GBTC premium has gone from -15 percent to -5 percent in 5 days."
“It will add fuel to the Bitcoin fire if $BTC can maintain these levels and Grayscale premiums turn positive.”
Bitcoin ETF holdings have returned to pre-crash levels.
Despite diverse views on GBTC, Grayscale CEO Michael Sonnenshein is one figure that is not bearish on any timeline.
Sonnenshein restated his intent ion to make GBTC, as well as its altcoin-focused equivalents, into exchange-traded funds in the company's recent mid-year shareholder letter (ETF).
Grayscale Bitcoin Trust (symbol: GBTC), Grayscale Ethereum Trust (symbol: ETHE), and our other investment products will be converted to ETFs, according to the letter.
While the United States has yet to approve a single Bitcoin ETF, neighboring Canada has never looked back since approving the first, the Purpose Bitcoin ETF.
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