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Why is the GBTC NAV premium higher than the actual Bitcoin price?

Johansson BankeJul 22, 2022 · 3 years ago1 answers

Can you explain why the GBTC NAV premium is consistently higher than the actual Bitcoin price?

1 answers

  • chris ngoletJan 30, 2025 · 7 months ago
    The GBTC NAV premium being higher than the actual Bitcoin price is a common phenomenon in the market. It is important to note that GBTC is a trust that holds Bitcoin, and its price is influenced by various factors such as investor sentiment, market demand, and the availability of shares. The premium arises because GBTC shares are traded on the secondary market and their price is determined by supply and demand dynamics. When demand for GBTC exceeds supply, the price can trade at a premium to the actual Bitcoin price. This premium can fluctuate over time and is influenced by market conditions and investor behavior.

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