$GBTC now wags the Bitcoin Dog

Reportedly, GBTC is a trust, not an ETF so it doesn’t put downward pressure on BTC.  GBTC is a trust that holds bitcoin, but trades like a closed-end fund. Therefore, it can trade at a huge discount or premium to the underlying price to bitcoin, which can either enhance or detract from an investor’s total return.

GBTC’s discounts allow investors to obtain Bitcoin exposure at below-market prices. When GBTC traded at a premium, investors paid as much as twice the market price of Bitcoin to gain access to the cryptocurrency via the fund. This benefited existing GBTC holders, which could sell at inflated prices.

Peter Schiff Shared: Bitcoin’s big drops don’t seem to happen in Asia anymore, but North America. I think it’s because $GBTC now wags the #Bitcoin dog. As investors dump the Grayscale Bitcoin Trust it puts downward pressure on the price of Bitcoin. The huge discount to NAV now competes with Bitcoin!

For clarity, What Is Premium to Net Asset Value? Premium to net asset value (NAV) is a pricing situation that occurs when the value of an exchange-traded investment fund is trading at a premium to its daily reported accounting NAV. Funds trading at a premium will have a higher price than their comparable NAV.

Community Response:  Until recently, Peter used to be pro-gold and anti-bitcoin. Now he seems to have given up gold and is just anti-Bitcoin.

There is a satellite in space taking pictures of the universe looking for any signs of life and possibly another earth-like planet to colonize. It’s the size of a football field and is made from gold the size of a golf ball that’s been flattened. Bitcoin can’t dream of doing that.

Yeah, but the satellite can’t eat Ramen so how good is it? See how both of our statements are completely irrelevant?

I’ll have to google Ramen to find out what that is. My point is Bitcoin PoW mining serves only a small percentage of Chinese miners at an immense cost to the Earth’s environment. The satellite uses its solar energy and is of immense value to our Earth’s environment.

What happens when the artificial sun explodes in the air?

It isn’t of any consequence to anyone because what evidence do you have of this artificial sun and if it’s real and not just an Illusion. Also, other satellites costing billions are going to be built in the future that needs investors while Bitcoin could be completely banned.

We can follow the pattern, but we can also act because of it.

You realize that Bitcoin doesn’t happen in physical locations, right?  Once the market realizes the FED can’t significantly raise rates/taper.. and start printing money again to prop up collapsing equities/real estate. Bitcoin goes on another 1,000% run.

P.S. thinks that bitcoin remains the single biggest threat to gold.  Bitcoin has outperformed his rock, on a 1 year, 3 years 5 year and 10-year average annual return basis.  No shit he wants to speak against it :). every day.

For months now people have mocked Peter Schiff, in the coming months most of what he has said will be proven to be correct.

For your investors that don’t like volatility – Gold is called. And its moment is coming! Just not quite yet. Does it matter if you are swing trading the market?

Is bitcoin down? A friend of mine told me that $40k seems expensive. I told her that’s what I thought 2 years ago when it was 10 times cheaper. What was gold 2 years ago by the way?

Bitcoin is expensive, soon to hit the next lower resistance level. Bitcoin does not fix that.

Correction: Soon to hit the next support level.  Selling GBTC is a trust, not an ETF so it doesn’t put downward pressure on BTC.

I think it’s rather the cash and carry from the ETFs, with the current macro it’s just too easy.

Right? Bitcoin is better. Bitcoin is the real asset. The Bitcoin Standard tells the truth about the value of every currency. That truth is power.

Big drops are also to liquidate long positions.  And when investors inevitably buy GBTC in the future, it will put upward pressure on the price of Bitcoin. What was your point again?