Time to stop ignoring Crypto...which trading platform?

[markd01]

How do you calculate this premium?

GBTC premium is the market price divided by holdings per share:
https://grayscale.co/bitcoin-investment-trust/#market-performance

 

[zghorner]

FOMO!!!!!!!!

lol lil bit. And a good indicator that all you longs should take profits and chill for a bit. I am the master of buying the top.

 

[Illini Trader]

You calculate the premium by adding 3 zeros to GBTC and comparing to BTC on Coinbase or any other exchange. Incidentally at the peak in 2017 GBTC got to a 100% premium. It traded at 38 when BTC was 19,000. Back then people were not as aware as how to buy Bitcoin so this was the easy way to do it. Poor fools not only lost when Bitcoin came down they had a double loss when the premium evaporated.

I believe my answer may have been correct when GBTC first came out but it is now in error. You now have to multiply the current BTC price by the 655,540 coins that GBTC owns and then divide that total by the 692,370,100 shares of GBTC outstanding. That will then give you the Net Asset Value per share. You then compare the NAV with the GBTC trading price to determine the premium or discount.

Sorry for giving you some incorrect information. I have been bothered by the fact that GBTC was at a substantial apparent discount per my prior method and I intuitively knew that could not be correct so I did some research that unearthed my error.

And, after I posted this I discovered that @markd01 in post #31 posted the Grayscale site that does all this calculation for you. Thanks, Mark