{"id":125389,"date":"2020-12-03T17:00:00","date_gmt":"2020-12-03T14:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/institutions-rushing-into-19k-bitcoin-as-gbtc-premium-hits-6-month-high\/"},"modified":"2020-12-03T17:00:00","modified_gmt":"2020-12-03T14:00:00","slug":"institutions-rushing-into-19k-bitcoin-as-gbtc-premium-hits-6-month-high","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/institutions-rushing-into-19k-bitcoin-as-gbtc-premium-hits-6-month-high\/","title":{"rendered":"# Institutions rushing into $19K Bitcoin as GBTC premium hits 6-month high"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3f9b3109e3e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3f9b3109e3e\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/institutions-rushing-into-19k-bitcoin-as-gbtc-premium-hits-6-month-high\/#Why_is_the_Grayscale_Bitcoin_Trust_premium_rising\" >Why is the Grayscale Bitcoin Trust premium rising?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/institutions-rushing-into-19k-bitcoin-as-gbtc-premium-hits-6-month-high\/#Institutions_are_propelling_BTCs_rally\" >Institutions are propelling BTC\u2019s rally<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Institutions rushing into $19K Bitcoin as GBTC premium hits 6-month high  <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>The demand for the Grayscale Bitcoin Trust (GBTC) continues to rise with its premium surpassing 30% on Dec. 3. This indicates that Bitcoin (BTC) is seeing increasing institutional demand as its price consolidates above $19,000.<\/p>\n<p>The Grayscale Bitcoin Trust is an institutional vehicle that is tradable in the United States through OTC markets. Accredited and institutional investors typically use the trust to obtain exposure to BTC with their brokerage accounts.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_is_the_Grayscale_Bitcoin_Trust_premium_rising\"><\/span>Why is the Grayscale Bitcoin Trust premium rising?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Grayscale Bitcoin Trust is the go-to institutional vehicle in the U.S. for BTC due to the lack of a Bitcoin exchange-traded fund (ETF).<\/p>\n<p>Other markets, like Canada, have a Bitcoin ETF that investors can use to gain exposure to BTC. Without an ETF, institutions in the U.S. turn to alternative vehicles, like the Grayscale Bitcoin Trust, to invest in BTC.<\/p>\n<p>Each share of the trust represents 0.00095346 BTC. Hence, buying one share of the Grayscale Bitcoin Trust is like buying 0.095% of one Bitcoin. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-12\/cda21a71-9a84-4faa-a545-040b41c3bdf2.jpg\"><figcaption style=\"text-align: center;\"><em>GBTC Discount or Premium to NAV. Source: Ycharts<\/em><\/figcaption><\/figure>\n<p>As of Dec. 3, GBTC is trading at $23.39 while across retail and spot markets, Bitcoin is trading at around $19,250, which makes 0.095% of BTC worth around $17.33. This means that GBTC is roughly 35% more expensive than buying Bitcoin at the current market price.<\/p>\n<p>On Dec. 3, the price of Bitcoin increased from $19,000 to $19,250 after the U.S. market closed. When that difference is deducted, the current premium of GBTC is around 25% to 30%. Notably, this is the highest level since June when the BTC market price was around $9,600 prior to rallying higher.<\/p>\n<p>Grayscale itself does not charge the premium, however. The market prices in the premium as it trades in a public market in the U.S. When the premium rises, it signifies that more institutions and accredited investors are accumulating BTC via GBTC.<\/p>\n<p>Although the current premium is rising, it is still relatively low compared to 2017. This suggests that the rally of Bitcoin still has a lot more room to run. When GBTC&#8217;s premium increases, it typically\u00a0signified a bullish trend and an overall increase in investor <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>etite for BTC.<\/p>\n<p>Consequently, the number of Bitcoin owned by Grayscale has increased substantially in recent months. Currently, Grayscale owns $10.19 billion in BTC, according to its latest <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/Grayscale\/status\/1334253767252992000\">report<\/a>. What&#8217;s more, Grayscale bought twice as much Bitcoin than was mined in November.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">.<a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/Grayscale?ref_src=twsrc%5Etfw\">@Grayscale<\/a> Bitcoin Trust bought near 2 times total <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/BTC?src=hash&amp;ref_src=twsrc%5Etfw\">#BTC<\/a>  mined during Nov 2020. <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$BTC<\/a> <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/BTC?src=hash&amp;ref_src=twsrc%5Etfw\">#BTC<\/a> <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/t.co\/GFJTwPR9Mk\">pic.twitter.com\/GFJTwPR9Mk<\/a><\/p>\n<p>\u2014 Coin98 Analytics (@Coin98Analytics) <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/Coin98Analytics\/status\/1334362982965362688?ref_src=twsrc%5Etfw\">December 3, 2020<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Institutions_are_propelling_BTCs_rally\"><\/span>Institutions are propelling BTC\u2019s rally<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Atop the continuous increase in demand for Bitcoin on Grayscale, Travis Kling, a fund manager at Ikigai, found similarities between BTC\u2019s past intraday price spikes and the entrance of new institutions.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-12\/b2a19338-4322-4387-936d-0ef77cf73647.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>The price chart of Bitcoin with institutional <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>. Source: Travis Kling<\/em><\/figcaption><\/figure>\n<p>Kling cited a chart that marked when major institutions, such as JPMorgan, Citibank, Blackrock and Guggenheim spoke positively about BTC, which was seemingly followed by more upside for BTC price. On Dec. 1, he\u00a0<a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/Travis_Kling\/status\/1333540445213716480?s=20\">said<\/a>:<\/p>\n<blockquote><p>\u201cI call this chart \u2018The Traditional Onslaught\u2019. We&#8217;ve been talking about \u2018The Herd\u2019 for 3+ years. The Herd requires career risk cover. This is that. They are by definition not early adopters, but their pockets are deep &amp; their capital is sticky. #Bitcoin is just getting started.\u201d<\/p><\/blockquote>\n<p>Unlike previous bull cycles, institutions are now more actively involved in the current Bitcoin rally. The clash between institutions accumulating BTC and whales selling might have furthered fueled the extreme volatility in the market. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<p>In the past several days, Bitcoin has been recording wild price swings within a matter of hours\u00a0after getting rejected by $20,000. This has also led analysts to have mixed opinions on where BTC is heading next, as Cointelegraph previously reported.<\/p>\n<p>At the same time, several indicators suggest that Bitcoin may be on the verge of breaking $20,000 sooner rather than later.\u00a0<\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/institutions-rushing-into-19k-bitcoin-as-gbtc-premium-hits-6-month-high\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Institutions rushing into $19K Bitcoin as GBTC premium hits 6-month high &#8221; The demand for the Grayscale Bitcoin Trust (GBTC) continues to rise with its premium surpassing 30% on Dec. 3. This indicates that Bitcoin (BTC) is seeing increasing institutional demand as its price consolidates above $19,000. The Grayscale Bitcoin Trust is an institutional&#8230;<\/p>\n","protected":false},"author":1,"featured_media":125390,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2020-12\/c5918168-e281-42d9-aa59-43e80f56abee.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,82548,76550,75720,73711,73785],"class_list":["post-125389","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-gbtc","tag-grayscale","tag-investment","tag-investments","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/125389","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=125389"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/125389\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/125390"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=125389"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=125389"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=125389"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}