GBTC Shares Shed 28.5%, Approaching Fair Value
- Shares in Bitcoin Investment Trust (BIT) have continued their slide back toward fair value.
Shares in Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term Investment Trust (BIT), which debuted for public trade as GBTC just over two weeks ago, have continued their slide back toward fair value.
Yesterday's plunge saw them shed 28.5% to $27.15, their lowest value ever. It took just a few days for the shares, each representing one-tenth of a bitcoin, to come within 16.5% of fair value. Bitcoin prices are currently near $233. Shares had been trading as high as $50.00, with unofficial trades reportedly reaching $133.70 - a 457% premium at the time.
As the secondary market clientele continues to diversify and make the market more efficient, it is possible that shares will continue to gravitate toward the $23 mark. Taking into account the fund's 2% annual fee, traders may find value equilibrium near $22.50.
The behavior reinforces the theory that passionate and/or well-capitalized Bitcoin investors were behind much of the buying following launch. In espousing Bitcoin's long-term potential, they were more than willing to pay a premium for shares, and may have also offered or paid above market rates in the US Marshals bitcoin auctions.
Shares in Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term Investment Trust (BIT), which debuted for public trade as GBTC just over two weeks ago, have continued their slide back toward fair value.
Yesterday's plunge saw them shed 28.5% to $27.15, their lowest value ever. It took just a few days for the shares, each representing one-tenth of a bitcoin, to come within 16.5% of fair value. Bitcoin prices are currently near $233. Shares had been trading as high as $50.00, with unofficial trades reportedly reaching $133.70 - a 457% premium at the time.
As the secondary market clientele continues to diversify and make the market more efficient, it is possible that shares will continue to gravitate toward the $23 mark. Taking into account the fund's 2% annual fee, traders may find value equilibrium near $22.50.
The behavior reinforces the theory that passionate and/or well-capitalized Bitcoin investors were behind much of the buying following launch. In espousing Bitcoin's long-term potential, they were more than willing to pay a premium for shares, and may have also offered or paid above market rates in the US Marshals bitcoin auctions.