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BY CNA Team - October 3, 2018

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Grayscale’s share price, NAV down as bitcoin struggles to break out

Grayscale’s bitcoin investment trust under pressure as bitcoin’s price show no signs of pushing up
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The only bitcoin-based US investment trust fund, the Grayscale Bitcoin Investment Trust managed by Grayscale Investments, is under pressure.

The net asset value (NAV) of the fund has tanked following the slump in bitcoin’s price from the all-time-high of last December.

Bloomberg says in an Oct 2 report that the fund’s share price has plunged 80% since bitcoin’s December all-time-high and trading at more than twice the NAV has also put downward pressure on the price.

The news wire says that the share price performance could also be due to investors reconsidering the high expense fee that the fund charges for transactions – at US$2 or 2% charge for every US$1,000 investment, far higher than the average 0.59% expense ratio of mutual funds reported last year by the Investment Company Institute.

Grayscale Investments has US$1.5bil assets under management and is one of the world’s largest crypto asset managers.

Image courtesy of Grayscale Investments website.

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