There is a huge bitcoin development taking place over the last week.  The price of bitcoin has exploded to new highs.  Usually it has been tracked pretty closely move for move by the Bitcoin ETN GBTC.  However, on this latest moves to new highs, GBTC is refusing to rally.

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3 weeks ago GBTC’s premium to NAV was 95%.  Today it’s in the 30-35% range

There are two takes you COULD make here.  You can say it’s a meaningful divergence signaling people in the financial community are trying to get out of digital assets for whatever reason.  Maybe some boogeymen will try to spin this as a warning in

On the other hand, you could say that the premium to the actual net asset value of GBTC was unsustainably large and had to come down at some point as other products become available.  We know there is a lot of work being put in to build out crypto trading infrastructure.  Is some news coming down the pipe?

Which is it?  I don’t have an answer.  I will say that as long as the price structure of bitcoin is holding up, you can’t really believe any boogeymen saying this is a huge negative divergence or warning.  They would only be correct in hindsight.

Trade ’em well