Grayscale Offers Bitcoin Trust Shares at Native Asset Value
The Grayscale investment trust has a special offer for accredited investors, where the BTC included in its shares is at native asset value, instead of at a premium.
Grayscale Investments, LLC has a special offer for accredited and institutional investors, for selling new shares of its Grayscale Investment Trust. The fund will offer the shares with the Native Asset Value (NAV) of Bitcoin (BTC).
More often than not, the Grayscale shares sell the small fraction of BTC inside them at a premium. Recently, the premium almost closed in on the NAV, just before the new decision to offer a restricted share placement.
Accredited investors and high net worth individuals can invest in Grayscale products at the price of Holdings Per Share, determined each day at 4 o’clock New York time based on TradeBlock indices.
Outside of the offering, GBTC shares are sold on the OTC markets, without the need for registration.
Grayscale has also seen an outflow of both institutional and retail interest. Holdings under management reached a peak of $2.7 billion in the summer months, coinciding with the biggest yearly rally for BTC so far. At the end of the third quarter, BTC lost around 30% and interest fell. Grayscale’s holdings shrank to $2.1 million in the last few reporting periods.
Only a few months ago, institutional investors were paying a premium of more than 22% to gain exposure to BTC, though without buying the asset outright. The peak premium coincided with peak BTC greed, after which the asset entered a period of correction.
GBTC currently trades at $9.63, down from a peak above $16 in the summer months. The lowered demand and shrinking premium are seen as indicators of bearish attitudes toward BTC.
The Grayscale offer arrives soon after Bakkt launched its futures offerings, with a fully transparent ramp for acquiring actual BTC. Additionally, there are renewed hopes of approval for a Bitcoin exchange-traded fund (ETF) by Bitwise, expecting a review from regulators toward the end of October.