Reporters learned that last year, during the peak of exchange rate for bitcoin (BTC), investors pay for the cryptocurrency twice more, acquiring financial instruments called the Bitcoin Investment Trust (GBTC). It is interesting that they continue to do so.
GBTC is a product produced Grayscale Investment, “daughter” of the venture company’s Digital Currency Group (DCG). In fact, the tool is a stock that investors can buy with their accounts used in the stock markets. Each share GBTC exhibited in the OTC market, has a value of one thousandth of bitcoin; accordingly, 1000 GBTC equal to 1 BTC. Grayscale Investment company maintains at all equivalent to the number of shares the number of cryptocurrencies.
In December of last year, when the price of bitcoin has reached its maximum level of $19 500 on the major cryptocurrency markets, including Japanese, American and South Korean, the value of one share GBTC was $39. By simple calculations, it becomes clear that Grayscale Investment sold bitcoins at a price almost twice the market.
To date, the GBTC cost is $5 and BTC is trading at a price of $4306 at the time of publication of news. This means that investors who purchase shares of, still overpay about 10% of the market value.
Historically, however, the allowance of 30% has always provided a Grayscale Investment company and was known to investors. They bought and buy the GBTC because I think shares are strictly regulated and reliable tool able to insure investment. The billionaire investor and owner of basketball club “Dallas Maveriks” mark Cuban (Mark Cuban) confessed that he has invested in bitcoins by purchasing exchange-traded notes (ETN) on the Swedish market via your us account.
“I wonder what there are many assets whose value is based on supply and demand. Most of the securities have no intrinsic value because they are not given any true property rights nor the right to vote. You only have the opportunity to buy and sell these securities. Bitcoin is the same. Its value is based on supply and demand. I bought some [bitcoin] through an exchange of notes on the Swedish stock exchange,” — said at the summit Vanity Fair New Establishment in Los Angeles last year Cuban.
The investor also mentioned the complexity of registration on the stock exchange the cryptocurrency for digital purchases money directly, which is caused by the need to comply with complicated regulatory rules.
One of the leaders of a large technology company Susquehanna Bart smit (Bart Smith) believes that the low liquidity of bitcoin in the first place is the lack of investment instruments for individuals; and shares of GBTC with the overpayment twice — this is clearly not the best option for entering the market investors. Perhaps the current premium of the company Grayscale Investment will decrease when the market will be more competing instruments, such as exchange-traded notes, bitcoin ETF and custody decisions.
Now the Commission on securities and exchange Commission (SEC) is considering applications for the registration of the exchange bitcoin funds from GraniteShares, Direxion, Proshares, Cboe and others. Many analysts believe that the situation will change as soon as the regulator approves one application for cryptocurrency ETF.