Bitcoin’s spiral pulls down Grayscale’s AUM with NAV at record discount
ambcrypto.comBitcoin has been on a downward spiral since the beginning of the year, but now it is recording steep corrections. The coin has already lost over 17% of its value over the past week, trading at around $35,500 at press time.
But, it is also worth noting that Bitcoin has lost 50% of its value from its November record peak last year. This seems to be affecting some major funds offered by Grayscale Investments.
In fact, commentator Peter Schiff noted in a tweet,
“The discount to NAV is a whopping 27%. It’s time to drop $GBTC.”
Meanwhile, Grayscale’s biggest and oldest fund, Grayscale Bitcoin Trust (GBTC), which held $25.3 billion in assets, is now trading at a record discount of 30% according to Coinglass. This, despite returning close to 26,000% since its inception.
<p lang=«en» dir=«ltr» xml:lang=«en»>The world’s largest bitcoin fund, the $27.1B @Grayscale #Bitcoin Trust ($GBTC), dropped to a record discount to its net asset value (NAV) this week. At one point, the shares traded 28% below the underlying value of the bitcoin held within the trust. pic.twitter.com/EPnRGQGEzb— Bitcoin (@Bitcoin) January 22, 2022
Having said that, Grayscale’s total Assets Under Management (AUM) stood at $35.4 billion on 21 January – A major one-day fall from an AUM of $38.7 billion reported on 20 January.
Here, it should also be pointed out that at the end of December, Grayscale Investments was holding $43.6 billion AUM under its various crypto-offerings. From there, the fund has lost almost 60% of its AUM against its November AUM figure of $60.9 billion.
A while back, Grayscale CEO Michael Sonnenshein had taken to Twitter to state,
“Buy the slump. sell the pump.”
Essentially suggesting that it might be a good time for accumulation.
Having said that,
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