What is GBTC premium?

The GBTC premium refers to the difference between the value of the assets held by the trust against the market price of those holdings. GBTC products usually trade at a premium cost to the current value of the holdings or net asset value since it is a regulated path to Bitcoin exposure and is backed by institutions.

How do you calculate discount/premium to Nav?

Formula: Discount/Premium to NAV = (Price / Net Asset Value) -1 Some apply trading strategies with arbitrage on premium. While other traders use premium as an indicator for BTC price direction signals: Increase In Premium: Bullish or becoming overbought. Decrease In Premium: Bullish or becoming oversold.

What is the discount to net asset value in GBTC shares?

The discount to net asset value is now roughly 30% in GBTC shares. That GBTC discount rate is actually so steep at this point, that many of Grayscale's altcoin funds actually have less severe discount rates than GBTC and even price premiums in some cases:

Why is GBTC a good investment?

The premium makes GBTC or another trust bought at a low premium a potentially profitable bet (even better than BTC or the other coin themselves). This is because if crypto goes up hard, which it sometimes does, the premium can expand and magnify your gains!