Andrew Left Is Right About Bitcoin Investment Trust
Each share of Bitcoin Investment Trust (NASDAQOTH: GBTC) represents ownership of approximately 0.092 bitcoin. Therefore, in functioning markets, the trust should trade for a price that roughly corresponds to the market price of 0.092 bitcoin.
The key word here is "should." As we've seen, Bitcoin Investment Trust is a poor proxy for bitcoin because it typically trades at a premium to the value of the bitcoin it owns. Often, it rises in price when bitcoin falls, and falls when bitcoin rises, because of changes in the premium.
An artist's rendering of what a physical bitcoin might look like. Image source: Getty Images.
Source: Fool.com
