Publicly listed bitcoin-related funds have seen both their share prices and asset under management plummet, in line with the mayhem of digital assets. “Investors have significantly reduced their exposure to risk assets and remain risk averse for the moment as inflation remains high and central banks continue tightening,” Dessislava Aubert, research analyst at Kaiko wrote to MarketWatch.
Grayscale Bitcoin Trust
the world’s largest bitcoin fund, has lost about 67% of its value year-to-date, underperforming bitcoin, which fell about 59% in the same stretch, according to FactSet data. Meanwhile, the fund’s shares were trading at a record discount of almost 37% to net asset value, or its underlying bitcoin holdings. GBTC is a closed-end fund, where accredited investors can buy shares based on net asset value, and sell them in the secondary market after a six-month lockup period. GBTC was launched in 2013. Its shares previously traded at a premium above net asset value, but since February 2021 have been trading at a discount. Plunging crypto values since roughly November have been a factor in the decline of the fund’s assets under management, which wen …