Replies to post #24679 on Grayscale Bitcoin Trust (GBTC)

[oiledgearz]

Just so. In an interview this week, Sonnenshein stated there was a huge number of shares coming off restriction and market forces (supply and demand), less buying vs more selling contribute to the widening discount.

We already knew this.... he was simply reiterating the obvious.

But! Take a look at this week... On March 25th, bitcoin hit a low of around 50,400 or so, GBTC hit 41... today at the close, March 26th, bitcoin was a touch under $54,000, or up nearly 8%, GBTC was 46.43, or up app 15%.

When the discount becomes too large, buying comes roaring back.

[Toofuzzy]

I don't understand why this trades at more than a minimal discount or a premium. This is NOT a closed end fund. Don't they buy more bitcoin if people invest more in the fund or sell bitcoin to redeem shares if people are selling the fund ?

Can anyone explain it to me ?

Toofuzzy