Executive Summary

  • Over the last year investors (likely retail) have bought Grayscale Bitcoin Trust (GBTC) shares at a market price 22% above its net asset value (NAV) on average
  • For Grayscale’s Ethereum Trust (ETHE) investors have bought shares at a market price 262% above NAV on average
  • This is driven by the lack of a redemption mechanism for Grayscale’s products as well as the sporadic creation of Grayscale shares, in contract with the options available to European investors such as the 21Shares Bitcoin ETP (ABTC) and 21Shares Ethereum ETP (AETH)
  • It is likely that a great deal of the institutional investors who create GBTC and ETHE shares are doing to profit solely from the premium, rather than to take a position on Bitcoin or Ethereum
  • Bitcoin and Ethereum products available in Europe such as ABTC and AETH have had much smaller premiums of 0.58% and 0.87% equally available to both retail and institutional investors

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