Grayscale premium evaporates. After briefly turning negative several times in January, the GBTC premium remained in the low single digits throughout much of February, before closing at a discount at the end of the month. The Grayscale trade has long been a favorite of institutional investors and with the premium at risk, we anticipate demand for GBTC at private placement to be pressured, leading to a lack of what has historically been strong inflows for BTC. In fact, Grayscale has since closed the private placement.

Purpose Bitcoin ETF (BTCC) sees strong demand. From its launch on February 18, 2021, BTCC has dominated the Canadian Bitcoin ETF space and has seen robust demand, adding over $0.5 billion of BTC in just a week since its debut. The Evolve Bitcoin ETF (EBIT), another Canadian Bitcoin ETF that launched in February, held approximately $51 million of BTC as of March 15, 2021.

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About the Author

Martin Gaspar Headshot
Martin Gaspar
Research Analyst

Martin is a research analyst at CrossTower. Martin has several years of experience in conducting fundamental research and cryptocurrency analysis. Prior to joining CrossTower, Martin was a fixed income research analyst at Wells Fargo Securities, where he helped support traders, salespeople, and buy-side clients through his actionable investment recommendations. He has a passion for crypto and has followed the space extensively since 2012. Martin holds a BA from Colorado College, where he graduated with Distinction in Economics.