Grayscale GBTC premium killer strikes: a large amount of Bitcoin spot buying is on the way

I have written about Grayscale quite a few times, and everyone should have a clear understanding of Grayscale's mechanisms and various rules. Today I will introduce more. Friends who don't know it yet can watch a video I made before: [William] Understand Bitcoin's biggest Pixiu - Grayscale in three minutes

In short, Grayscale's Bitcoin Trust Fund GBTC has a long-term premium, which is accepted and agreed upon by everyone.

According to the closing price of GBTC last week, there is a premium of more than 20%. Because of this premium, Grayscale has provided a steady stream of buying to the Bitcoin market. Currently, they hold 600,000 Bitcoins. Because of the recent suspension of the fund, the Bitcoin holdings have not increased for some time.

Since there is a long-term premium, there must be someone interested in this premium. Eliminating the premium and making the price more reasonable is what every participant in an efficient market should do.

Now, a player with the same compliance aura and Wall Street background has emerged. Yes, it is Skybridge Capital (SKYBRIDGE CAPITA) that I mentioned several times before:

In addition to being a "traditional" Bitcoin investment fund that can attract investments to help buy Bitcoin, they also have an interesting feature: providing GBTC SWAP:

“GRAYSCALE BITCOIN TRUST (GBTC) is trading above net asset value. In most cases, it is unwise to pay $1.20 for an asset worth $1.00.

The GBTC premium exists because traditional investors lack the tools to invest in Bitcoin. However, this premium may disappear when more investment products, especially Bitcoin ETFs, are listed.

GBTC investors can monetize or cash out before the premium dissipates by selling GBTC and investing in SkyBridge Bitcoin Fund LP. The potential returns for investors implementing this strategy are enormous regardless of Bitcoin prices.”
--Excerpt from Skybridge Capital’s official website.

They think it is stupid and unnecessary to buy GBTC instead of BTC, and smart people should immediately exchange gBTC for BTC or their BTC trust shares.

They give an example:

“For example, let’s say an investor owns 10,000 shares of GBTC. This is equivalent to owning 10 bitcoins.

Let’s further assume that the investor sells GBTC shares at $44.42, a 24.79% premium to NAV, realizing $444,200.

The proceeds were then invested in the SkyBridge Bitcoin Fund.

Since the SkyBridge Bitcoin Fund trades at NAV, the investor gained exposure to 12.33 bitcoins, or increased exposure by 2.33 bitcoins, as a result of the swap.”

It’s quite interesting. The arithmetic is actually very simple and everyone can do it. Who doesn’t know that selling GBTC can get more BTC?

So why do people buy GBTC at a high premium? Two words: peace of mind.

Therefore, when there is an institution that can also give you peace of mind and allow you to directly convert the premium of GBTC into new shares, I believe many people will be tempted, especially long-term investors.

Then GBTC - Tianqiao Fund shares, in this process, also means that one bitcoin will be purchased in the spot market and entered into the fund (in theory).

So if this process can be run, then we will see very solid Bitcoin spot buying in the next few months, so stay tuned.

It is a good thing to convert any possible buying orders in the market into real buying orders, buy Bitcoin, and push up the price of Bitcoin, because the larger the market value of Bitcoin, the healthier the overall positive cycle will be. For details, you can read my previous article : New Viewpoint: The Higher the Price of Bitcoin, the Higher the Odds

Yesterday, the founder of Skybridge Capital (former White House spokesman) gave a preview.

It’s all about to begin.

Their current AUM has reached $310 million as previously reported, and this is just the “beginning”:

In the future, they should also announce their asset management scale in a timely manner like Grayscale, so that everyone will be able to calculate their Bitcoin holdings.

Another pie-eating behemoth is coming online.

Also, their official website is very "calling" Bitcoin:

As for why they invest in Bitcoin, their logic is very simple:

“The story of Bitcoin is simple: supply and demand. The supply of Bitcoin is growing at about 2.5% per year, while demand is growing at a much faster rate, and the number of Bitcoins will be fixed.”

In fact, the logic of investment has always been simple, what is complicated is human nature.

In short, whether it is a compliant fund or a GBTC swap, the public has very high expectations for them.

Just wait for them to open the door.

Finally, the boss of Skybridge Capital is also a HODLer.

I hope they open for business, I hope they hold positions worth over 10 billion, and I hope they also swallow up the six-figure pie.

Look forward to it.

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