The Grayscale Bitcoin Trust (GBTC) is echoing bullish sentiment in Bitcoin (BTC) as its premium over spot price rises to its highest since May.
Data from analytics resource Bybt shows that on Tuesday, the so-called Grayscale premium stood at -5.88%. The last time it was closer to zero was on May 25.
GBTC premium slips above -6%
That was a week after Bitcoin began a major price drawdown, which this week has finally shown signs of abating.
GBTC has been the subject of intense speculation since Bitcoin’s 55% price dip, with unlocking of GBTC shares allegedly capable of adding to selling pressure.
As Cointelegraph reported, such a premise is false by default, given restrictions in place on GBTC holders.
Nonetheless, interest in purchasing has resurfaced this month in particular, with conspicuous names adding to their tranche and increasing their Bitcoin exposure.
The Grayscale premium — the trading price of GBTC relative to the net asset value (NAV) of its BTC holdings — has increased in step, trending back to zero after an extended stay in negative territory.
With unlockings mostly complete, the narrative surrounding Bitcoin price suppression has all but disappeared.
“$GBTC premium has gone from -15% to -5% in 5 days,” trader and analyst Nick Hellmann commented on the latest changes.
“If $BTC can maintain these levels and have Grayscale premiums flip positive that will add fuel to this Bitcoin fire.”
Purpose Bitcoin ETF holdings hit pre-crash levels
Despite mixed perceptions over GBTC, one figure decidedly not at all bearish on any timeframe is Grayscale CEO Michael Sonnenshein.
In the company’s latest mid-year shareholder letter, Sonnenshein reiterated previous public statements about his intent to turn GBTC, along with its altcoin-focused equivalents, into exchange-traded funds (ETF).
“We are 100% committed to converting Grayscale Bitcoin Trust (symbol: GBTC), Grayscale Ethereum Trust (symbol: ETHE), and our other investment products into ETFs,” the letter reads.
With the United States yet to approve a single Bitcoin ETF, neighboring Canada, which gave the green light to the first player, the Purpose Bitcoin ETF, has never looked back.
On Tuesday, Purpose’s assets under management jumped from $900 million Canadian dollars to $1.1 billion CAD — its highest since May 13.