Shares of the world's largest crypto fund ($10.5bn) are trading at 40% discount to the value of its holdings. What does this mean? Why does this matter? And should we be worried?
If GBTC were to be sold, would there be risk in holding its shares?
Selling all that bitcoin onto the market would tank the price of bitcoin, destroying value for all the shareholders, many of whom would probably be happy just to take possession of their share of the bitcoin.
It seems like, whoever owns GBTC has no interest in unwinding it, since they'd lose these hefty fees. It seems like what they'd probably prefer to do is just drag their feet on the SEC application while stocking on up their own shares prior to approval.
If GBTC were to be sold, would there be risk in holding its shares?
Selling all that bitcoin onto the market would tank the price of bitcoin, destroying value for all the shareholders, many of whom would probably be happy just to take possession of their share of the bitcoin.
It seems like, whoever owns GBTC has no interest in unwinding it, since they'd lose these hefty fees. It seems like what they'd probably prefer to do is just drag their feet on the SEC application while stocking on up their own shares prior to approval.
3AC got rekt by GBTC:
https://medium.com/@michelcryptdamus/3ac-and-blockfi-made-the-same-exact-dumb-trade-and-seem-headed-for-the-same-place-cd5a1dfd2eb