GBTC offers better returns than Bitcoin ETF last week

According to the data, bitcoin investment vehicle Grayscale Bitcoin Trust (GBTC) outperformed the newly launched Bitcoin Exchange Traded Funds (ETFs) last week.

The numbers shared by operator Grayscale confirm that GBTC has tacitly made better returns for investors since October 19.

GBTC price hits one-month low

While people keep talking about Bitcoin ETF futures and their impact on the market, Grayscale has not only held its own, but it is not far behind either.

Amid allegations that the newly launched GBTC fund was losing market share, company executives quickly realized that GBTC had indeed always been a better choice since it was launched.

GBTC vs. BITO performance graph | Source: TradingView

In the seven days to Monday, GBTC returned around 8.8%, while the groundbreaking Bitcoin futures ETF, the ProShares Bitcoin Strategy ETF (BITO), was down 0.5%.

This is partly due to the higher GBTC premium price, which is pushing the discount compared to spot prices to its lowest level since the beginning of September this week.

While many have expressed concern about Grayscale’s inability to bail out the negative spreads caused by multiple ETF launches, others countered that the value propositions of the two instruments were not comparable.

GBTC spread, holding rate, BTC / USD chart | Source: Bybt

CEO Barry Silbert of parent company Grayscale Digital Currency Group emphasize more about GBTC’s higher trading volume. As of Monday, October 25th, their total was up to $ 374 million while BITO was only managing $ 286 million.

Grayscale CEO Michael Sonnenshein recently reaffirmed his commitment to convert GBTC into an ETF and has officially registered it with the US regulatory authorities.

Ethereum Futures ETF

On the other hand, a third US Bitcoin ETF was launched today, this time by VanEck.

VanEck is one of the tenacious candidates to fight with the US Securities and Exchange Commission (SEC) to bring the product to market, so this launch event marks an important milestone for the company. Long-term attendees.

The fate of a physical Bitcoin ETF (ETF with BTC as an underlying) remains uncertain before the SEC makes a decision next month.

“If regulators care enough about the best interests of investors, they will soon approve a physical Bitcoin ETF. There are currently 14 countries in Europe, Canada, Brazil and others that have access to physical Bitcoin ETP. Physics> Futures “, Director of Digital Asset Strategy VanEck, Gabor Gurbacs, Arguments last week.

Bitcoin ETF Approval Schedule | Source: Arcane Research

Renowned trader and analyst Scott Melker place a bet The ETH Futures ETF is approved before the physical Bitcoin ETF.

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Minh Anh

According to Cointelegraph

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