Bitcoin is Trading at Extreme Premium in Stock Market

Barry Silbert-led Digital Currency Group’s subsidiary company Grayscale Investments operates one of the most frequently traded and popular publicly quoted securities based on Bitcoin price.

Each share of Bitcoin Investment Trust (GBTC) represents 10 percent of Bitcoin price and at the time of writing, GBTC is being traded at $417.

Coinbase’s GDAX and the Winklevoss twins’ Gemini, a large portion of accredited investors still rely on publicly quoted Bitcoin securities such as GBTC to invest in the digital currency.

Currently, the share price of GBTC demonstrates a staggering 48.92 percent premium rate for investors in the public stock market. The global average Bitcoin price, calculated by averaging the price of each Bitcoin exchange market, including the US, South Korea, Japan and China at the time of writing is $2,767.

The increase in the demand towards Bitcoin in public stock markets such as the US and Sweden can be attributed to a number of factors.

The three most obvious driving factors of Bitcoin demand in public stock markets are the ability of Bitcoin to scale, increased regulation of Bitcoin by overseas markets and increased demand towards Bitcoin from institutional investors such as Fidelity.
source cointelegraph.com