Monday , January 17 2022

These investors paid 100% bonus for bitcoin


(Bloomberg) – Do you lose money because of the collapse of all types of assets, from stocks to oil or corporate debt? It could be worse.

If you want to see what could be one of the worst-co-operative operations last year, look at the Bitcoin Grayscale Investment Trust with assets for US $ 1 billion. On December 18, the day before the epic bitcoin crisis began, the fund buyers boosted a premium against the net asset value to more than 100 per cent. More or less, it was something like broadcasting $ 40,000 for trading bitcoins around US $ 20,000 in the spot and space market.

This high price was partly due to lack of value. Purchasing the fund was one of the few ways in which US controlled regulators could access exposure in cryptocurrencies. Some were willing to pay for this privilege, given the expectation that the cryptomania had not started barely.

Of course, now we know that that was the top. As the bitcoin falls to $ 4,000 and the fund premium goes down, the bullish bets on December 18 are getting worse. Although it is not clear how long these buyers are running their jobs, anyone who had held the job would suffer losses of more than 87 per cent.

Warning for bargainers: even after the fall, the Grayscale fund is not very cheap. Its premium on net assets is still more than 9 per cent.

Original Note: These Traders have paid a 100% Premium for Bitcoin in the Top Market

Original storyteller: Michael Patterson in Hong Kong, [email protected]

Editors responsible for the original note: Brian Bremner, [email protected], Sam Mamudi

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