As a rule of thumb, if you don’t understand the premium, you shouldn’t be buying shares of GBTC or another trust. This is especially true with new trusts as they can tend to trade at a very large premium when they launch and sometimes even higher sometime later (see LTCN as an example).Why should I invest in GBTC?
This is because if crypto goes down hard, which it often does, the premium can shrink and magnify your losses! The premium makes GBTC or another trust bought at a low premium a potentially profitable bet (even better than BTC or the other coin themselves).Is $GBTC set for a short term retrace?
A fractal showing a potential short term retrace with following continuation of bull trend $GBTC is currently trading at a 13% discount to the Net Asset Value (NAV) of BTC held by the Grayscale trust.What is the premium on GBTC?
The premium makes GBTC or another trust bought at a low premium a potentially profitable bet (even better than BTC or the other coin themselves). This is because if crypto goes up hard, which it sometimes does, the premium can expand and magnify your gains!