. The shares have a minimum holding period of six months and a minimum investment threshold of $50,000, making it very difficult for retail investors to get onboard.
However, with the recent decline in institutional demand for the cryptocurrency, the Trust’s shares premium has traded at a steep discount. The premium represents the difference between the price of the underlying asset, Bitcoin in this case, and the value of the Trust’s shares. The latest plunge in premium discounts can be attributed to several factors, including the launch of several spot exchange-traded funds , providing institutional investors with an alternative to invest in Bitcoin via a regulated stock market vehicle.its Bitcoin Trust into a spot Bitcoin ETF, which would be backed by actual units of the digital assets and not just linked to it through derivative contracts.
However, the United States Securities and Exchange Commission has still not shown any signs of approving a spot Bitcoin ETF, citing several regulatory concerns.of Bitcoin ETF applications rejected by the SEC.