Crypto FOMO even makes a 350% Premium on the Bitcoin Look application

Bitcoin’s intriguing rise to record highs on investors is racing to be open to the rally – even though it means paying an absurd high mark.

As the largest cryptocurrency appeared above $ 23,000 for the first time this week, the price mania pushed the Bitwise 10 Crypto Index Fund (BITW ticker) is as much as 650% above the value of its holdings and is currently trading nearly 350%, according to data compiled by Bloomberg. At the same time, the price of the Bitcoin Grayscale Trust (GBTC ticker) moved to 34% among the rally.

Such setbacks mean that large institutional investors and mom-and-pop traders alike have to pay heavily to buy shares, as opposed to buying the underlying holdings altogether. But with Bitcoin’s 200% rally so far attracting muscle attention and raising fears that it will miss out on the benefits, demand for anything with a crypto platform is growing. For those investors who are looking for access to Bitcoin but are unsure or unsure of how to get a direct disclosure, the ease of buying a product like BITW or GBTC through a breakout platform is cost the extra cost.

“The answer is not as simple as it makes sense to pay for that? in a vacuum. It doesn’t make sense to pay that price, ”said James Seyffart, Bloomberg Intelligence ETF analyst. “But I think there is some level of justification, and if you want access to Bitcoin, there are no better options. ”

The base price of BITW to net asset value will rise

BITW has gone up 165% since its inception the first time earlier in the month, far outweighed the gains in Bitcoin and Ether. GBTC has climbed around 40% over that period. That performance creates the gap between the prices of the products and the net asset value of their underlying holdings.

These shocks appear from time to time in the global $ 5 trillion trade fund universe – especially in times of higher volatility, as in March – but rarely exceeds 3% or so. When they do, certain traders called authorized partners step in to close the gap by creating or repurchasing shares of the ETF.