Grayscale’s Chainlink Trust (GLINK) shares have soared to a 200% premium over the spot LINK markets.
On November 7th, the large spread was brought to light by ChainLinkGod, an influential member of the Chainlink network. During the recent Chainlink upsurge, the data indicates the gap between GLINK and LINK expanding from about 100% to 200%.
In the wake of the general cryptocurrency market rebound, the price of LINK has risen by over four times in the previous three weeks, prompting this announcement. On September 18th, LINK was trading for $6.14, but by September 18th, the price had risen to $13.13.
In contrast, there was no difference between the two investments in January of this year. Investors in Grayscale’s trusts may get out of their positions only by selling their shares to another party, since the shares are not redeemable for the underlying asset they monitor.
The entire value locked in GLINK has doubled to about $4M, with CoinShares reporting $2M worth of inflows over the previous seven days, driving the wide difference between GLINK and LINK. Securities are what shares in Grayscale Trusts are, hence only accredited investors may buy them.
Although $GLNK’s AUM is very low at about $4 million, ChainLinkGod found it fascinating to witness such a surge in interest in a product designed for large investors.
Many industry experts believe that Grayscale Trust shareholders may be able to cash in their shares in the near future.
Grayscale had originally submitted an application to the U.S. Securities and Exchange Commission (SEC) in October 2021 to convert its Bitcoin Trust into a Bitcoin exchange-traded fund, but the SEC denied the application. In contrast, Grayscale’s appeal was upheld in August by the United States Court of Appeals for the District of Columbia, which found that Grayscale’s Bitcoin Trust is “materially similar” to other futures ETFs authorized by the SEC.
It has been speculated that the Grayscale Trust’s ETF conversion would go forward after the SEC decided not to appeal the court’s judgment before the October deadline passed last month.
The announcement came after the biggest asset management in the world, BlackRock, applied for a spot Bitcoin ETF in July, sparking hopes that the first exchange-traded fund investing in spot BTC would soon gain regulatory clearance.
The GBTC share price has been doing better than spot Bitcoin recently, up 200% year-to-date compared to BTC’s 10% increase.