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Fiat Currencies Face The Same Fate As The FTX Fiasco – Bitcoin Magazine

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  • November 18, 2022

This is a recording of a recent Twitter Spaces with the Bitcoin Magazine Pro team and Mark Moss to break down the FTX implosion and how it relates to the global macro environment.

Listen To This Twitter Spaces:

Dylan LeClair: In regards to GBTC, one of the things that I saw, which makes total sense, I’d never thought of this: The fee is 2% of NAV (net asset value). So Mark, you were throwing out a 3-4% fee number there. One of the things that I never saw discussed once this thing turned from a premium to a discount, is that it’s 2% of NAV, but if it’s trading at a, say, 50% discount to NAV, you’re paying a 4% fee. If it’s at a severe discount for a while, you’re taking quite the churn. It gets actually less attractive. Well, it’s attractive because of the upside. And the Bitcoin cost equivalent of GBTC right now is $9K. So if it returns to par, you do quite well. What we have to ask is that conversion ever coming to an ETF? What’s the real incentive from a legal perspective for them to do.

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