👉 GBTC's share price against Bitcoin continued to plummet after news that Grayscale's sister company Genesis Trading blocked withdrawals because of its involvement from FTX.
👉 According to data from yCharts, the spread between the price of Grayscale-issued GBTC shares and the original asset #Bitcoin is -42.69%, the lowest level since the product was created in 2017.
👉 GBTC is a fund product issued by #Grayscale. Accordingly, the company will hold a certain amount of Bitcoin (BTC) in the Grayscale Bitcoin Trust (GBTC). The fund's GBTC shares can be purchased by individual and institutional investors through a US stock brokerage account, making it a method used by many US entities to gain indirect exposure to Bitcoin. .
👉 During the period 2017-2020, the GBTC price has always remained above the market price of Bitcoin, when demand overwhelms supply. The GBTC price was at one point 100% higher than the Bitcoin price, but has continuously dropped to around the 20-40% region in the following years.
👉 Thanks to the popularity of #GBTC, #Grayscale subsequently created more similar fund products for #Ethereum (ETH) and other major altcoins in the crypto market. Data provided on Grayscale's website confirms that as of November 18, 2022, Grayscale is managing assets of up to 14.7 billion USD, of which BTC owns is 10.5 billion USD, followed by is #ETH with $3.6 billion.
👉 However, since the beginning of 2021, GBTC's share price has continuously declined when demand is gone. Going to 2022, when the #cryptocurrency market plummeted after many big events, GBTC continued to be sold off by investors. In November, when it was announced that Genesis Trading had blocked withdrawals because of its involvement in the bankruptcy of #FTX, GBTC set a new bottom when it fell nearly 43% compared to the real value of Bitcoin.
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