GBTC massive premium to NAV, but can't short it on IB

[ScroogeMcDuck]

So I want to do a little risk free arbitrage by shorting GBTC and buying bitcoins because GBTC is selling at like a 30% premium to nav. Unfortunately IB says I need more permissions to short it, which is weird because I can short anything else without a problem.

 

[1245]

I don't know what GBTC, but if you can't get a locate, that is why there is a difference.

 

[i960]

Does it have options?

 

[marsman]

So I want to do a little risk free arbitrage by shorting GBTC and buying bitcoins because GBTC is selling at like a 30% premium to nav. Unfortunately IB says I need more permissions to short it, which is weird because I can short anything else without a problem.

Why don't you simply ask for permission?

 

[1245]

Why don't you simply ask for permission?

No locate means NO.

 

[marsman]

http://www.google.com/finance?q=GBTC
Bitcoin Investment Trust (OTCMKTS:GBTC), Mkt cap 108.81M.
ie. OTC aka Pink sheets...

 

[Surgo]

OTC permissions are a separate entity under IB, make sure you have them checked.

 

[Zr1Trader]

There have been some decent arb opps between american and chinese btc exchanges as of late. The chinese love bitcoin and it trades at a premium over there, probably because they don't like devaluing yuan , capital controls ect. BTC is one good option for them.

 

[ScroogeMcDuck]

I don't like arb between bitcoin exchanges because that usually just means it's harder to get your money out of one of the exchanges. Mt. Gox bitcoin was selling at a huge discount way back before they went bankrupt...

 

[ScroogeMcDuck]

I have literally every plausibly relevant permissions box checked... and it's talking about permissions not locate. fail to locate is a different error message...