Watch Out Below: GBTC Premium Tanks

The GBTC premium closed at 60% on Friday May 15th. Fast forward to yesterday’s trading session and the premium continued its free fall. The premium closed at 15% on 495 Bitcoin equivalent volume.

27.15 GBTC Last Price / 0.1 Bitcoin Per Share / $235.74 XBTUSD at 4pm EST = 15% premium.

The premium declined by 35% in one trading session. BIT holders are rushing for the exit. The fact that a new and cheaper Bitcoin investment vehicle in the form of an ETN launched yesterday with a premium of 0.41% didn’t help either. Please read New ETN On The Block: Bitcoin Tracker One for more details about the new product.

The GBTC premium has moved from indicating the resumption of the Moon climb, to another hype cycle to be sold into. Long holders of GBTC recognise this might be their best chance to recover some of their lost investment before the price collapses again below $200. He who sells first, sells best.