GBTC Discount Shrinks to 16% Amid Bitcoin ETF Optimism

According to some experts, the reason GBTC’s discount is getting smaller is that investors believe the SEC will approve various pending applications for Bitcoin ETFs.

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Grayscale’s Bitcoin investment fund, Grayscale Bitcoin Trust (GBTC), is now trading at its smallest discount in almost two years. This is happening as the possibility of spot Bitcoin ETFs getting approved in the United States is getting closer.

As of October 13, the latest data from YCharts reveals that GBTC’s discount compared to the actual value of Bitcoin assets (NAV) has reduced to 15.87%.

To put it simply, the discount to NAV percentage shows how much less GBTC is trading for compared to the actual value of its Bitcoin assets. This number helps us see how far off its true value the security is trading.

The discount started shrinking when BlackRock and other financial institutions applied for spot Bitcoin ETFs in mid-June. Back on June 15, the discount was at 44%, but by July 5, it had decreased to 26.7%. Since then, the discount has continued to get smaller.

GBTC’s Discount to NAV chart over the last 12 months. Source: YCharts

The last time GBTC’s discount was this low was back in December 2021, just a month after Bitcoin reached its record high price of $69,000 on November 10, as per CoinGecko.

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One Bitcoin supporter named Oliver Velez thinks that the market is anticipating the approval of spot Bitcoin ETFs by the end of this year.

Another expert, cryptocurrency investor Lyle Pratt, believes that GBTC’s discount will keep getting smaller over the next week or two as we get closer to the approval of spot Bitcoin ETFs.

Reports came out on October 13 that the SEC wouldn’t challenge the Grayscale decision. Bloomberg’s ETF analyst, James Seyffart, mentioned in a post on the same day that approvals for spot Bitcoin ETFs seemed like a “done deal.”

Then, on October 15, Grayscale announced that the SEC’s 45-day window to request a rehearing had passed. This means that the court would issue its final decision within seven days.

In their statement, Grayscale mentioned that they are prepared to turn GBTC into an ETF once the SEC gives the green light, and they’ll share more details when they can.


Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

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