◆ What is Grayscale Premium?
AMB Crypto, a media specialized in cryptocurrency, reported that the grayscale premium fell to -3.77% on the 25th (local time). Premium is the difference between a fund’s underlying asset value (NAV) and the market price of a fund’s stock. Investors who subscribe to the fund make NAV-based investments, so they can deposit for a certain period of time and earn profits.
Investors who buy grayscale bitcoin trust stocks from the OTC market, rather than joining the fund, pay a certain premium to invest. When demand for grayscale bitcoin trusts surged in the bull market at the end of last year, the plus premium was high.
◆ What is the market impact?
As Grayscale began to buy bitcoins, the premium rose from 6.87% in mid-July last year to 25% in mid-December. Growing grayscale demand triggered a bitcoin rally.
From last month, the grayscale premium continued to decline. Before Bitcoin crashed on the 21st, the premium recorded negative on the 19th. AMB Crypto analyzed that bitcoin surpassed $50,000 as the upward trend continued until this month, but the grayscale premium continued to decline, and it was only sporadic buying.
The media predicted, “When the grayscale premium exceeded 10%, the price of bitcoin rose.”
◆ There are also signs of rebound
CoinDesk, a media specialized in cryptocurrency, reported that some market indicators are showing bullish signals. A large amount of bitcoin was transferred from Coinbase Pro, which is mainly used by institutional investors, to a trust wallet, which is a sign that institutional investors are confident about the long-term value of bitcoin.
In the options market, the interest rate for unpaid put calls, which measures the number of put options versus call options, is below 1. More investors invest in calls (bearish bets) than puts (bearish bets).
NewsBTC quoted Cryptoquand CEO Joo Ki-young on Twitter, saying, “Recently, 13,000 bitcoins have been withdrawn from Coinbase, which is a clearer bullish signal than ever before.” NewsBTC said, “This amount of bitcoin was withdrawn from the exchange every time before the price of bitcoin rises.” I predicted it.