OPEN-SOURCE SCRIPT
GBTC Premium to Coinbase
Updated
The BTC ETF premium indicator for TradingView is a specialized tool designed to measure and visualize the premium or discount of the Grayscale Bitcoin Trust (GBTC), an investment vehicle that holds Bitcoin, relative to the actual price of Bitcoin on the Coinbase exchange. This indicator can be particularly insightful for traders interested in the BTC securities market and those analyzing the demand for Bitcoin as reflected by institutional investment products.
#### Description:
The BTC ETF premium indicator in TradingView leverages an advanced Pine Script algorithm to calculate the premium (or discount) percentage of GBTC compared to the spot price of Bitcoin (BTC/USD) on Coinbase. The premium is a critical insight that reflects market sentiment and potentially arbitrage opportunities between the trust's share price and the underlying cryptocurrency asset.
Here's how the indicator works:
1. **Calculation Methodology:**
- **Implied Bitcoin Price of GBTC:** We determine the implied price of Bitcoin within GBTC by dividing the GBTC closing price by the known ratio of Bitcoin per share.
- **GBTC Premium to Coinbase:** The percentage premium is then calculated as:
$$\text{GBTC Premium} = \frac{(\text{Implied Bitcoin Price of GBTC} - \text{Actual Bitcoin Price on Coinbase})}{\text{Actual Bitcoin Price on Coinbase}} \times 100$$
- This calculation is performed using the closing prices on a per-minute basis to ensure timely and accurate analysis.
2. **Visualization:** The indicator plots the premium as a step line chart, making it easy to visualize changes over time. A dynamic label accompanies the plot, displaying the implied Bitcoin price, the actual percentage premium or discount, and whether the premium is trending up or down compared to the previous day's value.
3. **Usage Scenario:** Traders can use this indicator to monitor the live premium 24/7 and analyze how it behaves during different market conditions, including when the equity market, where GBTC is traded, is closed.
#### Additional Features:
- **Color-Coding:** The premium is color-coded in green when positive (premium) and in red when negative (discount), aiding quick visual assessment.
- **Zero-Line Reference:** A horizontal line is drawn at zero to easily identify when GBTC is trading at par with the spot price of Bitcoin.
- **Real-Time Label Updates:** The label updates in real time with the latest premium/discount information and includes an arrow to signify the trend direction.
#### Access and Usage:
The indicator can be favorited or added to your TradingView charts. You are also welcome to use the source code as a foundation for further customization to suit your trading strategies.
#### Notes:
Please consider that the GBTC has specific trading hours, and the indicator can show live changes even when its market is closed, which might lead to discrepancies from official static data. For best performance, use this indicator alongside the GBTC candlestick chart on TradingView.
#### Description:
The BTC ETF premium indicator in TradingView leverages an advanced Pine Script algorithm to calculate the premium (or discount) percentage of GBTC compared to the spot price of Bitcoin (BTC/USD) on Coinbase. The premium is a critical insight that reflects market sentiment and potentially arbitrage opportunities between the trust's share price and the underlying cryptocurrency asset.
Here's how the indicator works:
1. **Calculation Methodology:**
- **Implied Bitcoin Price of GBTC:** We determine the implied price of Bitcoin within GBTC by dividing the GBTC closing price by the known ratio of Bitcoin per share.
- **GBTC Premium to Coinbase:** The percentage premium is then calculated as:
$$\text{GBTC Premium} = \frac{(\text{Implied Bitcoin Price of GBTC} - \text{Actual Bitcoin Price on Coinbase})}{\text{Actual Bitcoin Price on Coinbase}} \times 100$$
- This calculation is performed using the closing prices on a per-minute basis to ensure timely and accurate analysis.
2. **Visualization:** The indicator plots the premium as a step line chart, making it easy to visualize changes over time. A dynamic label accompanies the plot, displaying the implied Bitcoin price, the actual percentage premium or discount, and whether the premium is trending up or down compared to the previous day's value.
3. **Usage Scenario:** Traders can use this indicator to monitor the live premium 24/7 and analyze how it behaves during different market conditions, including when the equity market, where GBTC is traded, is closed.
#### Additional Features:
- **Color-Coding:** The premium is color-coded in green when positive (premium) and in red when negative (discount), aiding quick visual assessment.
- **Zero-Line Reference:** A horizontal line is drawn at zero to easily identify when GBTC is trading at par with the spot price of Bitcoin.
- **Real-Time Label Updates:** The label updates in real time with the latest premium/discount information and includes an arrow to signify the trend direction.
#### Access and Usage:
The indicator can be favorited or added to your TradingView charts. You are also welcome to use the source code as a foundation for further customization to suit your trading strategies.
#### Notes:
Please consider that the GBTC has specific trading hours, and the indicator can show live changes even when its market is closed, which might lead to discrepancies from official static data. For best performance, use this indicator alongside the GBTC candlestick chart on TradingView.
Release Notes
Key Fund Information updated, 01/16/2024Release Notes
Key Fund Information updated, 01/17/2024Release Notes
Key Fund Information updated, 01/18/2024Release Notes
Key Fund Information updated, 01/19/2024Release Notes
Key Fund Information updated, 01/22/2024Release Notes
Key Fund Information updated, 01/23/2024Release Notes
Key Fund Information updated, 01/24/2024Release Notes
Key Fund Information updated, 01/24/2024Add daily BTC holded in GBTC and daily BTC outflow in script.
Release Notes
Key Fund Information updated, 01/26/2024Release Notes
Key Fund Information updated, 01/29/2024Release Notes
Key Fund Information updated, 01/30/2024Release Notes
Key Fund Information updated, 01/31/2024Release Notes
Key Fund Information updated, 02/01/2024GBTC now has a premium to Net Asset Value.
Release Notes
Key Fund Information updated, 02/02/2024Release Notes
Key Fund Information updated, 02/05/2024Release Notes
Key Fund Information updated, 02/06/2024Release Notes
Key Fund Information updated, 02/07/2024Release Notes
Key Fund Information updated, 02/08/2024Release Notes
Key Fund Information updated, 02/14/2024Release Notes
Key Fund Information updated, 02/16/2024Release Notes
Key Fund Information updated, 02/20/2024Release Notes
Key Fund Information updated, 02/21/2024Release Notes
Key Fund Information updated, 02/24/2024Release Notes
Key Fund Information updated, 02/27/2024Release Notes
Key Fund Information updated, 02/28/2024Release Notes
Key Fund Information updated, 02/29/2024Release Notes
Key Fund Information updated, 03/01/2024Release Notes
Key Fund Information updated, 03/02/2024Release Notes
Key Fund Information updated, 03/05/2024Release Notes
Key Fund Information updated, 03/06/2024Release Notes
Key Fund Information updated, 03/07/2024Release Notes
Key Fund Information updated, 03/08/2024Release Notes
Key Fund Information updated, 03/09/2024Release Notes
Key Fund Information updated, 03/12/2024Release Notes
Key Fund Information updated, 03/13/2024Release Notes
Key Fund Information updated, 03/14/2024Release Notes
Key Fund Information updated, 03/16/2024Release Notes
Key Fund Information updated, 03/19/2024Release Notes
Key Fund Information updated, 03/20/2024Release Notes
Key Fund Information updated, 03/22/2024And update frequency change announcement.
Release Notes
Key Fund Information updated, 03/23/2024And update frequency change announcement.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.