Grayscale’s GBTC Points to Diminishing Interest in Bitcoin (BTC)
The assets per share suggest GBTC is trading below the BTC par value, signalling a withdrawal of interest.
Grayscale’s GBTC are signalling diminished interest in Bitcoin (BTC) from institutions and retailers with access to the fund. The derivative fund, which owns a fraction of BTC for each share, states the underlying asset price at $6.90, equivalent to $6,900 in BTC spot prices.
Additionally, Grayscale noted a further drop in assets under management, from $2.2 billion down to $2 billion in 24 hours. The Grayscale BTC funds, or GBTC, is still the leading asset taking up the bulk of investment, while the biggest outflows were seen from altcoin funds.
GBTC currently trades at $8.62 on the OTC market, moving down from about $11.60 at the beginning of November. Trading volumes have also diminished in the past months.
GBTC remains extremely volatile, and outperformed other funds during BTC boom times. But as BTC is looking shakier, GBTC immediately reflected the loss of interest.
GBTC owners do not get exposure to actual BTC coins, and the assets are held and controlled by Grayscale alone. But the fund is viewed as one of the indicators for interest in BTC investment.
The BTC market price is going through significant volatility, even going through intraday price swing anomalies. BTC moved between the $7,250 level and $7,170 bottom in the past day, with the $7,300 previous support now turning into resistance.
The behavior of GBTC is another indicator that BTC is once again expected to dip below $7,000. The end of 2019 also sees slowing futures activity on mainstream markets, as investors may be winding down their positions ahead of the holidays.
BTC prices are once again seeking bottom, with volumes turning to their usual range around $18 billion in 24 hours. With lowered activity, BTC goes through further stagnation and a battle between bulls and bears. Trader sentiment still signals “extreme fear”.