If you’re following my latest entries, you will notice I’ve been discussing some of the more interesting nuances of the Bitcoin Investment Trust Full Disclosure guide. The 200 page document is littered with interesting tidbits and information about the the bitcoin network, notable events that have occurred within bitcoin development, as well as the various risk factors contributing to the volatile nature the price given to Bitcoin. In an attempt to flatten any noise (analogous trading behavior), Greyscale uses Tradeblock to calculate Bitcoin Price Value (in US Dollars) every day at 4pm for the purpose of calculating fees owed for administration of the trust (I believe it is calculated to be 2% of the NAV of the trust per year – accrued at a daily rate).
Here is the exact newsletter in its entirety:
Beginning Saturday, May 9, TradeBlock’s XBX index will include price data from the Coinbase exchange and no longer include Kraken. In addition to maintaining relevancy in the ever-changing bitcoin liquidity environment, this update also consolidates XBX price inputs exclusively to the XBT/USD market.
In January 2014, Coinbase expanded their business model to include an open order book exchange. Drawing on an existing user base and two months of no-fee trading, the venue has quickly gained notable volume and is now the highest-volume exchange in the United States.
On April 1, Coinbase transitioned to a fee-based model. After a full month of data since the addition of fees, Coinbase has demonstrated its ability to maintain volume and predominantly non-anomalous trading.
This is news to me – Congratulations Coinbase! In case this is the 1st time you have ever heard of Tradeblock, I’ll take this moment to tell you about how I know about it! Back in 2013, I had been on the internet and I had randomly stumbled upon The Genesis Mining Block Calculator – the premier mining calculator of choice. Eventually, they changed their name, and have now become synonymous with being an unobjective price aggregation tool based on weighted volume.