Popular crypto-exchange FTX is in the news today after it listed $GBTC, $ETHE, and $BITW Spot and Futures. These are tokenized versions of Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust (ETHE), and Bitwise Index (BITW).
The listing of these particular tokenized spot positions on FTX represents the first time a centralized exchange has carried out a listing of this kind.
this is probably the most major thing an exchange has listed in the last… well since ftx listed move contracts
super super huge imo https://t.co/MdmqaEGiBI
— loomdart (@loomdart) January 5, 2021
A Futures market for GBTC and ETHE is of particular interest to users, especially since they can now short GBTC and ETHE.
GBTC typically trades at a premium to its underlying holdings, and many have speculated that the introduction of a Bitcoin ETF, subject to the SEC’s approval, may contribute to Grayscale’s premium depleting entirely.
The existence and emergence of multiple Bitcoin and Ethereum ETFs with competitive fees and a relatively normal relationship to the underlying asset would undoubtedly lead to the collapse of Grayscale’s premium, with the same noted to be 17%, at the time of writing.
It should be noted, however, that a Futures market for GBTC and ETHE, as represented by this FTX listing, may just make the collapse of Grayscale’s premium a reality a lot sooner than expected.
While most investors are excited about the prospect of arbitrage opportunities this listing presents them with, FTX remains off-limits for investors based in the United States.
The exchange, incorporated in Antigua and Barbuda, has its main base in Hong Kong and has previously offered a host of unique products to the larger crypto-markets, including tokenized stocks like Apple and Tesla. These offerings enable non-U.S residents to gain 24/7 access to trading fractionalized versions of the aforementioned shares.
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