American digital asset management company Grayscale has stopped raising new funds through the Grayscale Bitcoin Trust (GBTC). Earlier, GBTC was traded at a price of about 15% lower than the price of Bitcoin (BTC).
Competitive products such as the Bitcoin Trust Fund launched by other companies and the Bitcoin Listed Index Fund (ETF) recently approved by Canadian financial authorities have emerged, and GBTC has been trading at a price lower than the BTC price in recent weeks.
Grayscale’s other cryptocurrency investment product, Grayscale Ethereum Trust, also received a reverse premium. Grayscale is a company run by Digital Currency Group, CoinDesk’s largest shareholder.
Meanwhile, on the morning of the 11th, Digital Currency Group announced a plan to purchase GBTC over 250 million dollars. Treasury stock purchase is a common method used by companies as a means to increase stock prices by generating demand while reducing the number of shares.
On the 10th, CoinDesk US reported on the situation that Grayscale is trying to hire nine ETF experts. This is read as a sign of a major change in the business model of grayscale trust products.
English article: In-Sun Jeong, Translation and Editing of CoinDesk Korea
Reports and press releases should be sent to [email protected].