The Bitcoin Fund (QBTC.U) and NAV%

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You mentioned if the fund could be purchased at a discount or at a NAV of 0 – 10% then you might purchase the fund rather than the stock. I am not sure how to calculate the NAV% from the numbers provided at the website: https://3iq.ca/the-bitcoin-fund/
(or maybe I do and the fund is no where in the range you are suggesting)

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Asked on January 12, 2021 2:09 pm
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I am using the figures from that page. See attached image. The formula is simply:

(Market Price-NAV price)/NAV Price

This gives you the current premium of 17%

Mat

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Posted by Mathieu Litalien
Answered on January 12, 2021 6:36 pm
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Hi there,

The daily NAV is right on that page. Keep in mind, this is based on end of trading day and is not a perfect correlation to Bitcoin price. As an example, right now it shows QBTC has having a NAV of $49.0614 per share as of close of markets today (Jan 12). It closed trading at $57.30 today which means it is now trading at a 16.8% premium to NAV.

Worth noting, it has been a several months since it was trading at a discount. Over the past couple of months, I've been checking every once in a while and it has always traded at a premium. At one point it was bout 30% premium. The easy of access to buy/sell QBTC is likely why it is trading at a premium to NAV. If Bitcoin drops and has sustained bear pressure, that premium could to turn into a discount.

Mat

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Posted by Mathieu Litalien
Answered on January 12, 2021 5:46 pm
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