GBTC Drifts Toward Fair Value as Hype Subsides

Shares of 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), traded as GBTC on the OTC markets, have drifted back toward their fair value as the hype surrounding their initial offering begins to wear off.

Shares in GBTC, approved for trade last quarter, debuted two weeks ago as the first regulated Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term-traded vehicle for the public to gain exposure to bitcoin prices. Each share in the trust represents 0.1 bitcoins, implying a fair value of roughly $24 apiece based on the current bitcoin price.

Early investors were more than willing to pay a heavy premium to get their hands on the first shares. Share prices hovered near $50 for most of the two-week period, representing a 100% premium. Some reports suggested even higher premiums based on OTC "outlier data". Some investors see bitcoin prices soaring multifold in the future and therefore, argue that prices of the regulated shares are technically "cheap".

However, GBTC prices have since given back 24% to match their lowest levels since launch, falling to $38.00 in the final minutes of trade on Friday. While still a 58% premium, the initial hype maybe wearing off, especially as a greater diversity of investors begin to participate.