April 19, 2024
Grayscale GBTC Discount Shrinks to 16% Amid Bitcoin ETF Confidence
Latest Cryptocurrency News

Grayscale GBTC Discount Shrinks to 16% Amid Bitcoin ETF Confidence

Grayscale’s Bitcoin investment vehicle, Grayscale Bitcoin Trust (GBTC), is currently trading at its lowest discount in almost two years, driven by the anticipation of potential approval of spot Bitcoin exchange-traded funds (ETFs) in the United States.

According to the latest data from YCharts, as of October 13, GBTC’s discount to Bitcoin’s net asset value (NAV) has narrowed to 15.87%. The discount to NAV is a metric that measures how much a mutual fund or ETF is trading below its net asset value, serving as an indicator of how far a security is trading from its true value.

This narrowing of GBTC’s discount began when BlackRock and several other financial institutions submitted applications for spot Bitcoin ETFs in mid-June. The discount dropped from 44% on June 15 to 26.7% by July 5, and it has continued to decrease since then. The last time GBTC’s discount was at a similar level was in early December 2021, shortly after Bitcoin reached its all-time high price of $69,000 on November 10, as per data from CoinGecko.

Prominent Bitcoin advocate Oliver Velez believes that the market is factoring in the potential approval of spot Bitcoin ETFs by the end of the year.

Other analysts, including cryptocurrency investor Lyle Pratt, anticipate that GBTC’s discount will continue to diminish over the next week or two as the possibility of spot Bitcoin ETF approval draws nearer.

Image by upklyak on Freepik

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