Prior to the market carnage on March 12, the Grayscale Bitcoin Trust (GBTC) had acquired over 300,000 BTC. Grayscale’s trust has been one of the longest-running FINRA approved investment vehicles with bitcoin assets under management. On Feb. 5, GBTC shares climbed more than 10% that week and investors were also paying a 20-30% premium. Since then and after the market downturn on Thursday, GBTC shares are down 45% from $11.52 to $6.32 per share.
The Grayscale Bitcoin Trust Holds More Than 300,000 BTC
When people check the price ticker usually they are gauging the price from one of the multitudes of crypto spot exchanges worldwide. They notice that the price has slid considerably, but what they often don’t see is the adverse effects on other parts of the industry. The market carnage on Thursday saw massive derivatives liquidations, margin calls from lenders, and exchange-traded crypto products felt the wrath.
The Grayscale Bitcoin Trust (OTCMKTS: GBTC) was one investment vehicle hit hard by the storm. News.Bitcoin.com reported on GBTC on Feb. 5, 2020, when shares were trading for $11.52 per share. A few weeks later, it was reported that GBTC held more than 300,000 BTC under management ($1.5 billion). Three days ago on Reddit, one person discovered the trust recently crossed the 300K BTC mark and stated:
By March 10, GBTC issued 311,309,400 shares which is equivalent to 300,619 BTC. This means GBTC investors added 39,570 BTC to their holdings. Read More...