Bloomberg: Some investors paid a 100% premium for bitcoin during its peak
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On Dec. 18 2017, the day before bitcoin's major crash at the end of last year, buyers of the Grayscale Bitcoin Investment Trust paid a 100% premium for the product, which offers exposure to the crypto. Investors were essentially paying $40k for bitcoins that were valued at $20k in the spot market, according to a Bloomberg News report. The Grayscale Bitcoin Investment Trust is one of the few ways for regulated U.S. institutional investors to get bitcoins on their balance sheets. During the crypto-mania, some investors were willing to pay Grayscale a premium for this exposure. (Source: Bloomberg)
AUTHOR
Steven Zheng is a researcher for The Block. He joined The Block in August 2018. Steven graduated from St. John’s University with a degree in economics. Previously, he covered blockchain and crypto at Radicle, a startup analytics firm. He also had brief stints at Cheddar, a media startup, and Bowery Capital, a venture capital firm. He owns bitcoin. Follow Steven on Twitter at: @Dogetoshi
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