Pricing Efficiency of Bitcoin Trusts
Almudhaf, F. (2018) “Pricing efficiency in Bitcoin trusts”, Applied Economics Letters, 25(7) 504-508.
Posted: 2 Sep 2020
Date Written: 2018
This article examines the pricing efficiency of Bitcoin Investment Trust. We investigate the deviation between prices and net asset values and find that there is a significant and persistent premium with an average of 44%. Such evidence points to pricing inefficiency of the currently available trust and encourages practitioners to introduce better instruments such as Exchange Traded Funds as alternatives to investors interested in having exposure to bitcoins and the digital currencies market.
Keywords: bitcoin, pricing efficiency, trusts, premium, cryptocurrency
JEL Classification: G10, G12, G14
Suggested Citation: Suggested Citation