Discount

Future Bitcoin price dips to $90K ‘routine profit taking’ — Why BTC traders keep buying

December 7, 2024 Coin Telegraph

Grayscale GBTC discount falls to 16% as markets bet on Bitcoin ETF approval

October 16, 2023 Coin Telegraph

Some analysts say GBTC’s discount is narrowing because investors are pricing in the SEC’s approval on several pending spot Bitcoin ETF applications.

Grayscale’s Bitcoin investment vehicle, Grayscale Bitcoin Trust (GBTC) is trading at its lowest discount in nearly two years, as spot Bitcoin ETFs continue to inch toward potential approval in the United States.

The latest data from YCharts shows GBTC’s discount to Bitcoin net asset value (NAV) has narrowed to 15.87% as of Oct. 13.

Discount to net asset value (NAV) is a percentage that measures the amount that a mutual fund or ETF is trading below its net asset value. The metric is used to track how far away a security is trading away from its true value.

Data shows that GBTC’s discount began to narrow when BlackRock and several other financial institutions filed spot Bitcoin ETF applications in mid-June, where the discount fell from 44% on June 15 to 26.7% by July 5. Since then, the figure has continued to narrow.

*GBTC’s Discount to NAV chart over the last 12 months. Source: YCharts*

The last time GBTC’s discount was at a similar level was in early December 2021 — only a month after BTC hit its all-time high price of $69,000 on Nov. 10, according to CoinGecko.

Bitcoin advocate Oliver Velez believes the market is pricing in spot Bitcoin ETF approval by year's end.

Other analysts, such as cryptocurrency investor Lyle Pratt believe GBTC’s discount will continue to “evaporate” over the next week or two as spot Bitcoin ETFs near approval.

THE GBTC DISCOUNT HAS NARROWED TO 16% AS THE MARKET BETS ON A BITCOIN SPOT ETF APPROVAL.

Grayscale's Bitcoin Trust, commonly known as GBTC, has experienced notable changes in its market dynamics. At the start of this year, GBTC was trading at a significant discount of 48.31%… pic.twitter.com/2nWLmvnewb
— The Wolf Of All Streets (@scottmelker) October 13, 2023

Reports emerged that the SEC wouldn’t appeal the Grayscale decision on Oct. 13, leading to Bloomberg ETF analyst James Seyffart referring to spot Bitcoin ETF approvals as a “done deal” in an Oct. 13 post.

On Oct. 15, Grayscale reportedly delivered a statement noting that the SEC’s 45-day period to seek a rehearing had passed, meaning the court would issue its “final mandate” within seven calendar days.

"The Grayscale team remains operationally ready to convert GBTC to an ETF upon the SEC’s approval, and we look forward to sharing more information as soon as practicable," the company reportedly said.

NEW: Statement from @Grayscale on the @SECGov’s decision to not seek a rehearing:

“The Federal Rules of Appellate Procedure’s 45-day period to seek rehearing has now passed. The Court will now issue its final mandate within seven calendar days. The Grayscale team remains…
— Eleanor Terrett (@EleanorTerrett) October 15, 2023

Cointelegraph reached out to Grayscale for comment but did not receive an immediate response.

Magazine: How to protect your crypto in a volatile market — Bitcoin OGs and experts weigh in

Bitcoin on $3K discount at Binance.US, but there’s a catch

July 10, 2023 Coin Telegraph

Binance.us

Bitcoin is selling for just over $27,500 on Binance.US, a nearly $3,000 discount from global spot prices.

Bitcoin (BTC) is selling for a nearly $3,000 discount on Binance.US, providing a significantly better rate than global spot prices — but there’s just one catch.

On July 9, a swathe of crypto users began noticing a widening price discrepancy between cryptocurrencies listed on the United States crypto exchange and their global spot prices, with many calling it a “depeg” of cryptocurrencies.

BTC/USD charts on Binance.US shows a current price of $27,536. Source: *Binance.US*

Bitcoin is currently trading at $27,536 on the exchange against the U.S. dollar, which is around an 8.5% discount from global spot USD prices of $30,106 at the time of writing.

Other cryptocurrencies are also trading at a discount in U.S. dollar terms. Ethereum prices are around $200 cheaper on Binance.US, trading for $1,695 at the time of writing. Some stablecoins such as USDT were also trading below their pegs with Tether at $0.915 on the exchange.

WOAH. Bitcoin is trading at $26,970 on binance US vs it’s $30,300 (real price)

Ethereum is $200 lower than normal

USDT is at 0.889 cents pic.twitter.com/LgKeMEDZQv
— borovik.eth (@3orovik) July 9, 2023

However, while the crypto discounts look enticing for an arbitrager, the reality is that most investors will not be able to take advantage of them.

This is because the discount only applies when a cryptocurrency is traded against fiat USD on the crypto exchange.

The problem is, Binance.US users have not been able to deposit new USD into the platform since June 9, when it was suspended. Effectively, this means that the discounted cryptocurrencies can only be bought with any USD already sitting on the account before the suspensions took place.

Concerns that Binance.US will soon halt USD withdrawals have also led to some users trading their cryptocurrencies below market value in order to exit their positions in USD.

According to an email from Binance.US to customers, which has circulated on Twitter, the last day for USD withdrawals will be July 20.

In late May, a similar situation occurred relating to the Australian dollar at the Australian branch of Binance when the company’s third-party payments provider shuttered fiat on and off ramps.

The price of BTC on Binance fell 20% compared to global spot prices when traded against the Australian dollar.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

Bitcoin selling for $5K cheaper on Binance Australia as fiat ramp closes

May 30, 2023 Coin Telegraph

Bitcoin selling for K cheaper on Binance Australia as fiat ramp closes

AUD

One Bitcoin can be bought for the equivalent of $22,000 on Binance Australia if paid using Australian dollars. The problem is getting the funds there.

Bitcoin (BTC) is trading hands at a hefty discount on the Australian branch of the Binance crypto exchange, with the price of Bitcoin down as much as 21% if traded against the Australian dollar.

The move comes as traders rush to cash out their crypto holdings into Australian dollars before the door for local bank withdrawals closes in a few days.

On May 18, Binance Australia informed users that it is suspending Australian dollar services after a decision by its third-party payments provider.

Deposits via bank transfer were halted immediately, while withdrawals using the PayID service are set to remain open until June 1 at 5 pm local time. The exchange has also warned its Australian clients that any Australian dollars remaining on the exchange after May 31 would be automatically converted into USDT.

The announcements have since caused a progressive rush to cash out, causing BTC prices to become heavily discounted.

At the time of publication, one BTC can be purchased for only 33,750 Australian dollars, equating to around $21,987, or 21% lower than the global spot rate.

*BTC/AUD rate on May 30. Source: Binance Australia*

Those hoping to capitalize on the cheaper Bitcoin may be disappointed, however.

Without the ability to deposit Australian dollars into the trading wallet and hefty premiums for converting other crypto assets into Australian dollars, users may find it difficult to get their hands on the discounted BTC.

*AUD/USDT trading pair. Source: Binance Australia*

Binance has also warned of the delisting of several crypto trading pairs with Australian dollars on June 1 and for users to “pay attention to the risks when trading.”

Meanwhile, Binance said it is continuing to look for an alternate provider to continue offering Australian dollar deposits and withdrawals. Currently, the ability to buy and sell crypto using credit or debit cards is still available, though these rates appear to be in line with the market.

While AUD deposits by bank transfers are no longer available to Binance users in Australia, there are still several ways Aussie users can deposit onto the exchange.

- Credit or debit card
- Use P2P to buy and sell crypto
- Third Party Payment

Details: https://t.co/DSRhaebEfS pic.twitter.com/dQSKfJXYHK
— Binance Australia (@Binance_AUS) May 27, 2023

Binance has been in hot water with regulators down under as its derivatives license was canceled by the Australian Securities and Investments Commission last month. It is also facing a massive investigation by the U.S. Commodities and Futures Trading Commission.

Aussie crypto broker Swyftx, which relied on Binance for its liquidity needs, h previously stated that the severing of Binance’s Australian dollar on/off-ramps would not affect its own operations.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

Grayscale’s GBTC Discount to NAV Breaks Records as Spread Widens by More Than 35%

September 26, 2022 Bitcoin.com

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