Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
My mind is boggled. That's about $25,000... so it meets the minimum bid requirements for the BIT. You can immediately arbitrage that if you re-buy the BIT. *argh*!
This is just playing / probing to these guys. Let's take a look at one of the bidders, Citadel. From Wikipedia:
"Citadel is the eleventh largest hedge fund manager in the world, and the second largest multi-strategy hedge fund manager in the world."
But keep in mind that the total volume of matured GBTC stocks is less than 150,000 bitcoin. Not much in the big picture.
My best explanation or theory - Yes the opportunity exists, but it comes with an opportunity cost. You get to do this trick once per 12 month holding period.
Looked at from a 260% premium perspective, it looks extremely tempting.
Looked at from a gain/loss perspective, not so much. 12 month holders will be selling at a loss at these prices, and in general, purchased them with intentions to sell at higher prices.
I do expect temptation to win the battle, it is just a question of how high the Bids must get before that occurs, and whether once that equilibrium is reached we enter a dead zone, or begin finding equilibrium between the disparate pricing between GBTC and the rest of the markets.