The figures shows the spread between GLINK and LINK increasing from around 100 per cent to 200 per cent amid the latest Chainlink rally
GLINK, shares in Grayscale’s Chainlink Trust, have soared to a 200 per cent premium compared to the spot LINK markets.
The sizable spread was flagged by ChainLinkGod, a prominent influencer and Chainlink community ambassador, on November 7. The figures shows the spread between GLINK and LINK increasing from around 100 per cent to 200 per cent amid the latest Chainlink rally.
The news comes after LINK more than doubled in price over the past three weeks amid the wider crypto market recovery. LINK last traded for $13.13, up from $6.14 on September 18, as per CoinGecko.
For comparison, there was no spread between the two assets in January 2023.
Shares in Grayscale’s trusts are not redeemable for the underlying asset they track, meaning investors can only exit their position by selling the shares to a buyer.
The large spread between GLINK and LINK was led by the total value locked in GLINK doubling to nearly $4 million, with CoinShares reporting the product received $2 million worth of inflows over the past seven days. Grayscale Trusts shares are securities and are exclusively accessible to sophisticated investors.
While the Assets Under Management (AUM) of $GLNK is just $4 million, it is interesting nevertheless to see the demand rise on a product geared towards institutional investors, ChainLinkGod said.
Although Grayscale Trust shares are non-redeemable today, many experts believe that may soon change.
Grayscale first applied to convert its Bitcoin Trust into a Bitcoin ETF in October 2021, but was rejected by the U.S. SEC. Nevertheless, the U.S. District of Columbia Court of Appeal sided with Grayscale’s appeal in August, ruling that Grayscale’s Bitcoin Trust is “materially similar” to futures exchange-traded funds previously approved by the Securities and Exchange Commission.