Grayscale Chainlink Trust’s stock GLINK has soared to levels 200% higher than the spot LINK market.
The difference is quite big OK Popular influencer and Chainlink community ambassador ChainLinkGod issued the warning on November 7th. Data shows that during the latest Chainlink rally, the spread between GLINK and LINK increased from around 100% to 200%.
The news comes after LINK’s price more than doubled in the past three weeks as the cryptocurrency market recovers across the board. LINK last changed hands at $13.13, up from $6.14 on September 18.
Historical price-performance ratio of LINK (black) and GLINK (gray). Source: ChainLinkGod.
In contrast, there was no difference between the two in January this year.
Grayscale Trust shares are not redeemable for the underlying asset they track, meaning investors can only exit their positions by selling their shares to a buyer.
The huge difference between GLINK and LINK is driven by the total value locked in GLINK doubling to around $4 million, with CoinShares reporting that the product has receive It received $2 million worth of inflows in the last seven days. Grayscale Trust shares are securities and are available for purchase by sophisticated investors only.
Chain God said:
“Although GLNK’s AUM is only around $4 million, it’s interesting to see a surge in demand for products targeting institutional investors.”
Although Grayscale Trust shares are currently non-callable, many experts believe that could change soon.
Grayscale first applied to convert its Bitcoin Trust into a spot Bitcoin ETF in October 2021, but was rejected by the U.S. Securities and Exchange Commission (SEC). However, the U.S. Court of Appeals for the District of Columbia sided with Grayscale in August, ruling that Grayscale’s Bitcoin Trust was “substantially similar” to a previously approved SEC futures ETF.
Last month, the SEC declined to appeal the court’s decision before an October deadline expired, fueling speculation that its ETF transition could roll out soon and setting up similar restructurings for other Grayscale trusts. paved the way.
The news comes after BlackRock, the world’s largest asset manager, filed for a spot Bitcoin ETF in July, sparking bullish expectations that the first ETF to invest in spot BTC could soon be available. Regulatory approval.
GBTC stock has also outperformed spot Bitcoin in recent months, with GBTC up 200% year to date, while BTC is up 10% over the same period.
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According to “Rebel”