Grayscale’s Bitcoin investment vehicle, Grayscale Bitcoin Trust (GBTC), is currently trading at a 17% discount to the price of Bitcoin. This information comes from CoinGlass, a monitoring resource that tracks the performance of various cryptocurrency assets. As of September 9th, the value of GBTC shares was 17.17% lower than the BTC/USD price.
The decrease in the discount for GBTC shares is a significant development for Bitcoin’s largest institutional investment vehicle. Earlier this year, Grayscale was engaged in a legal battle with US regulators over converting GBTC into a spot ETF. The company’s fortunes took a turn for the better when BlackRock, the world’s largest asset manager, announced its plans to file an application for the first Bitcoin spot price-based ETF in the United States. This news provided a boost to Grayscale’s performance and improved the price of GBTC.
While the US Securities and Exchange Commission (SEC) has not yet approved any spot ETF applications, Grayscale achieved a victory last month in its legal battle with the SEC. This win contributed to the improved performance of GBTC and led to the 17.17% discount, which is the lowest it has been since December 2021.
In the past, GBTC shares had a premium to Bitcoin’s price, meaning they traded above the net asset value. However, the premium turned into a discount and reached nearly 50% at one point. The current 17% discount is a positive sign for investors and suggests that the gap between GBTC and Bitcoin’s price is narrowing.
Despite the positive news for GBTC, the price of Bitcoin itself continues to decline. At the time of writing, Bitcoin was trading below $25,500, with the market showing weakness. September is historically a weak month for BTC/USD, often resulting in a 10% loss. However, some analysts believe that October will be a bullish month for Bitcoin.
CryptoCon, a popular trader and analyst, highlighted late November as a key period to watch for signs of life from Bitcoin. This aligns with the theory that Bitcoin tends to experience a “bull run launch” every four years, with November 28th being a significant date.
It is important to note that this article does not provide investment advice or recommendations. Investors should conduct their own research and exercise caution when making investment decisions.