Grayscale’s cryptocurrency funds premium rates hit new lows after the market plunged by an average of 20%. Previously, U.Today reported that all Grayscale funds with tracked premium rates went negative after the LTC fund fell below zero. For now, Litecoin’s fund premium rate remains at a positive 7%, while Bitcoin’s fund premium falls closer to 20% negative.
The premium rate is the value that changes in accordance with the spot price of an asset. Whenever premium rates are declining, traders usually reconsider their investment into the fund since it performs worse than the spot asset. The main point of the managed fund is to effectively follow spot assets without holding assets in periods of bear markets or corrections.