Institutional Investors Losing Interest in Bitcoin: Report

[Casual]

Grayscale's Bitcoin Trust continues to trade at a discount and money is flowing out of Bitcoin ETFs in Canada. What's going on?. GBTC, a popular investment product which allows investors to trade shares in trusts holding large pools of Bitcoin, is now constantly trading at a persistent discount to net asset value (NAV), Glassnode said. What that means is that shares in Grayscale’s Bitcoin Trust are now less expensive to buy that Bitcoin itself. But this wasn’t the case until recently; for years, investors paid a premium to buy into GBTC. “A primary driver for Bitcoin price appreciation in 2020 and 2021 was both the narrative, and the reality of institutional demand,” the report read. “One of the largest factors in this was the one-way flow of coins into Grayscale's GBTC trust fund as traders sought to arbitrage the high premium observed in 2020 and early 2021.source