GBTC Discount Currently At an All-Time Low as Bitcoin Continues To Fall in Value


According to the latest data report posted by YCharts, Grayscale Bitcoin Trust (GBTC) Discounts are currently at their record lows, trading at a concerning 30.79% discount, as the leading crypto continues to decline in market price value.

While a massive discount to net asset value, such as the one GBTC is on right now, may sound like an appealing bargain for most of us, it is best to remember that it also comes with a caveat, as GBTC has a six-month lockup period requirement. This means that the existing fund holders are currently running at a loss as the only path for profit right now is to cash in on their respective shares.

This tough situation GBTC currently finds itself in led to many industry experts arguing that investors may soon move on from the leading trust product as the market is now beginning to pump out new alternatives on a regular basis. According to them, with more Bitcoin ETFs getting approval, there is now an apparent arbitrage trade in shorting GBTC itself and going long on the leading crypto.

Nevertheless, it is also worth noting that Grayscale is also trying to convert its GBTC into a bona fide Bitcoin ETF. Should the US Securities and Exchange Commission (SEC) give the green light to this particular proposal, it would effectively rest the GBTC discount to zero, solving the debacle all in one swoop.

However, the problem here is that the US SEC does not still seem convinced that approving a spot Bitcoin ETF is a good idea despite the overwhelming support of the crypto community and even some lawmakers towards the financial product proposal. As per the SEC, approving a spot Bitcoin ETF runs the risk of further BTC price volatility and price manipulation instances.


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