July 24, 2021

Canada’s Purpose Bitcoin ETF may be cutting into Grayscale’s market share

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For the first time, shares in Grayscale’s Bitcoin Trust traded at a discount compared to spot BTC for an entire month.

Rafael Schultze-Kraft, the CTO of on-chain analytics provider Glassnode, shared the observation to Twitter on April 1, noting shares in the institutional fund manager’s Bitcoin Trust had traded at a notional discount of -6% on average during March.

He noted the discount in Grayscale’s BTC shares has coincided with the launch of the Purpose Bitcoin ETF in Canada — which has accumulated 16,000 BTC worth roughly $940 million since launching in late February.

3/ The drop in $GTBC premium coincides with the launch of the Purpose #Bitcoin ETF – which could’ve drawn investment away from GBTC.

The ETF has accumulated more than 16k BTC in over a month. (Still dwarfed by Grayscale’s 654k BTC holdings).

Chart: https://t.co/o0AtdTEQsD pic.twitter.com/AGINo51TMy

— Rafael Schultze-Kraft (@n3ocortex) April 1, 2021

Glassnode’s CTO is not alone in speculating the launch of North America’s first Bitcoin ETF may be siphoning institution away from Grayscale, with Galaxy Digital’s Mike Novogratz tweeting:

“[Grayscale] used to be the only game in town. NowTitle: Canada’s Purpose Bitcoin ETF may be cutting into Grayscale’s market share
Sourced From: cointelegraph.com/news/canada-s-purpose-bitcoin-etf-may-be-cutting-into-grayscale-s-market-share
Published Date: Fri, 02 Apr 2021 02:55:27 +0100