According to Reggie Browne from GTS, ETFs may Trade at a Premium to Fair Value

Crypto News – According to GTS co-Global Head of ETF Trading and Sales Reggie Browne on Bloomberg Television, the way U.S. institutions are now permitted to handle the cryptocurrency means that Bitcoin spot ETFs may trade at a premium if and when the trading commences.

I think there is going to be a premium above NAV because U.S. broker-dealers can’t trade bitcoin (against) cash inside their broker-dealer – some can, most can’t. So you’re going to have trade hedges over futures and trade it on a premium, and then take that off, and I think there is a lot of complexity there.

Browne

According to Reggie Browne from GTS, ETFs may Trade at a Premium to Fair Value

He suggested 8% as the crazy amount that investors would have to pay because of this intricacy and the fact that Bitcoin futures are trading above the spot price. Browne added that there is sufficient liquidity to maintain a tight and competitive spread.

“The market making community is prepared to offer a lot of liquidity for this structure and resilience around it, so the spread width is not a concern,”

Browne