Ninjastic
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Board Speculation
Re: SecondMarket Bitcoin Investment Trust Observer
by
Chef Ramsay
on 19/05/2015, 03:35:31 UTC
Quote from: Fiat_Hodler on May 19, 2015, 01:47:17 AM
Quote from: pleaseexplain on May 19, 2015, 12:50:11 AM
Quote from: Fiat_Hodler on May 19, 2015, 12:15:28 AM
Quote from: bad trader on May 18, 2015, 09:13:05 PM
The GBTC market closed at the all time low at 27.15 dollars per share (~280 dollars per bitcoin) with volume of 4950 shares (less than 490 bitcoins).



Meanwhile, the volume of Bitcoin Tracker One was ~949 bitcoins.



thats actually pretty nice news. More people will want to invest as the price becomes more reasonable.

no i think is bad ie bad for these type of products. if the early adopters to something (here a way of getting into the market without actually owning bitcoin) get burnt  - as i assume they bought their shares at a much higher value a year ago - and in the longer term there is no material benefit (premium) from doing something (eg buying GBTC over bitcoin itself) then GBTC will just wither on the vine.
There is no reason GBTC should have been double the market price of bitcoin to begin with. Its called arbitrage although GBTC doesnt have the best system for it...
The interesting thing is that arbitrage is going well for those that took advantage of it up to this point. The case is closed now considering things are so close so it will be rowdy if there is anymore of this such action going forward.