The Grayscale Bitcoin Trust (GBTC), a Bitcoin investment vehicle, outperformed newly launched exchange-traded funds last week, according to data.
Grayscale executives and others shared figures that confirm that GBTC quietly has delivered higher investor returns since Oct. 19.
Grayscale discount hits a one-month low
Talk continues to center around Bitcoin futures ETFs (and their market impact), but industry veteran Grayscale is retaliating.
Despite claims that the funds are taking away GBTC’s custom, chiefs of the firm quickly pointed out that the former was actually a better option since its launch.
Performance chart GBTC vs. BITO Source: TradingView
In the seven days leading up to Monday, GBTC returned 8.8% while ProShares’ Bitcoin Strategy (BITO) fell 0.5%.
This was partly due to the GBTC Premium heading higher, and reaching its lowest discount to spot prices since September early this week.
Grayscale’s inability to save the negative premium from ETFs was a concern. However, those who claimed that they have no comparable value proposition countered this.
GBTC premium vs. Holdings vs. BTC/USD Chart. Source: Bybt
Barry Silbert, CEO at Grayscale’s parent company Digital Currency Group, highlighted GBTC’s higher trading volumes. These totaled $374 million Monday while BITO managed $286 millions.
Cointelegraph reported that Grayscale CEO Michael Sonnenshein has reaffirmed his promise to convert GBTC into an ETF and applied to the United States regulators.
Next Ethereum futures ETF?
On Tuesday, VanEck will launch the third U.S. Bitcoin ETF.
Related: Bitcoin price on the rise – 5 Things to Watch in Bitcoin This Week
The release comes after a long battle with the Securities and Exchange Commission, (SEC), over bringing such product to market. This marks a turning point for market participants who have been around for a while.
Before the SEC’s decision on the first applications next month, the fate of physical Bitcoin ETFs, those that actually delivered BTC, is still in doubt.
Gabor Gurbacs, VanEck director, stated last week that if regulators were concerned enough about investors’ best interests, they would approve a physical Bitcoin ETF very soon.
“14 countries from Europe, Canada, Brazil, and other countries have access to physicals Bitcoin Exchange Trade Points. Futures > Physical
Bitcoin ETF decision schedule. Source: Arcane Research
Scott Melker, a popular trader and analyst, countered that the ETF for Ethereum futures will be in place before the physcial Bitcoin go ahead.