Chaos at Grayscale complete: RedeemGBTC opens attack

Last Updated: 10 January 2023

Good news for GTBC share owners. The negative premium seems to be receding slightly again.

Discount evaporates

Investors can choose different ways to get exposure to bitcoin. For instance, you can buy bitcoin from the spot market or invest in a share in a bitcoin fund. The latter option has a problem: the share price does not quite follow that of bitcoin anymore.

At the low point, the share value was as much as 50% lower compared to the spot price. And make no mistake: there is over 600,000 BTC in the fund worth $10 billion.

In the last few days, things went in the right direction for the premium. Currently, you can buy GTBC at a 38% discount. Still drama of course, but a trend change seems to be taking place (see blue line below).


Meanwhile, a fierce discussion has also started on Twitter. Shareholders are criticising the way the Grayscale Bitcoin Trust is losing value. The premium could be brought down if asset manager Grayscale sells some bitcoin to buy up GBTC.

They are joining forces to make a statement. On the website RedeemGBTC, owners can share how many shares they own. As long as enough people join, they aim to achieve the following goals:

  1. Find a credible way to sell bitcoin to lower the premium with minimal impact on the market
  2. Bring down the cost of managing the funds
  3. A different management and internal process for the trust fund

Within no time, 4% of shareholders signed up.

  • Gabriele Spapperi

    Gabriele Spapperi is a veteran cryptocurrency investor and blockchain technology specialist. He became fascinated with Bitcoin and distributed ledgers while studying computer science at MIT in 2011.

    Since 2013, Gabriele has actively traded major cryptocurrencies and identified early-stage projects to invest in. He contributes articles to leading fintech publications sharing his insights on blockchain technology, crypto markets, and trading strategies.

    With over a decade of experience in the crypto space, Gabriele provides reliable insights and analysis on the latest developments in digital assets and blockchain platforms. When he's not analyzing crypto markets, Gabriele enjoys travel, golf, and fine wine. He currently resides in Austin, Texas.

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