Greyscale Investments Bitcoin investment trust slid this week as negative news piled up on its only investment, the cryptocurrency bitcoin. Earlier this week, J.P. Morgan Chase CEO Jaime Dimon called the currency a “fraud” further adding that it “won’t end well” for holders. China added to bitcoin’s negative press Friday by ordering all exchanges of the currency to cease operations in attempt to stem what it viewed as unsafe exposure to potential crisis. About one-quarter of all bitcoin trading occurs in China.
The Bitcoin Investment trust hold about 175,000 bitcoins in its portfolio and saw the market price of its shares run away from its net asset value early in 2017. The gap between the two hit its nadir at the end of August as the underlying assets hit a historical high of $4,881. Short interest in the fund spiked to 74,000 shares on August 31.