Greyscale Investment’s Bitcoin Trust (GBTC) fell to a new low this week, with the bitcoin fund down 35.18% against bitcoin spot prices. The GBTC discount has been in the water for 577 consecutive days.
GBTC discount to NAV increases by 35% – fund has reached an all-time low on the spot price of BTC
The Greyscale Bitcoin Trust (OTCMKTS:GBTC) is one of the oldest and most popular bitcoin (BTC) funds on the market today. However, in recent times GBTC has been suffering from a decline compared to BTC market prices. Unfortunately, GBTC has been trading at a discount rather than a premium since February 26, 2021, or for 577 straight days.
The current pre-market price of GBTC is $11.20 and according to Securities and Exchange Commission (SEC) filings, there are 643,572 BTC held in trust. Measurements indicate that 643,572 BTC is equivalent to 3.065% of the 21 million Bitcoin supply cap. GBTC’s 35.18% discount is the fund’s all-time lowest BTC point price since the fund’s inception.
Many people believe that the decline of GBTC is due to the fact that there are now more currencies to trade, and Grayscale’s efforts to convert GBTC to ETFs have so far failed. The US SEC rejected the company’s latest attempt in June, and Grayscale decided to sue the SEC over the rejection.
Businessman and entrepreneur Bob Lucas discussed the GBTC situation on Saturday. “Grayscale bitcoin discount record widened by 35%,” Lucas He tweeted.. “October 2020 Breakpoint. Meh institutions. This is if BTC falls to the lows in the coming months [is] A good option. Must be willing to hold. [the] The point at which a callback option opens its value. Even so, it should be limited to discounts,” Lucas added.
According to Glassnode statistics, GBTC was offered a 30% discount last March, and at the time institutional investors were flocking to acquire GBTC at a discount. Grayscale and its parent company Digital Currency Group (DCG) have attempted to offset the decline by including share buybacks.
While institutional investors have already flocked and Lucas stated that GBTC could be a good option, investors don’t seem to be rushing to GBTC’s discounted price. “Who thought to be exposed [bitcoin] Was GBTC a good idea in the first place? ” Tom Mitchellhill He tweeted. on Monday. Mitchell Hill added: “They are literally selling it at a 36% discount and the market is still refusing to touch it.
If the SEC allows GBTC to be transferred to ETFs, BTC’s price decline may disappear. The US regulator, however, has not yet approved spot market exchange-traded funds, and the SEC has cited market manipulation as one of the main reasons for rejecting funds that contain these entities. Meanwhile, many traders wholeheartedly believe that BTC spot prices are coming in the teens.
Some of us have been talking about needing to see $8-12K BTC before we get a new bull. [underway]Twitter account classical app He tweeted. last week. “It’s not there yet. My company has been targeting this for a year. Oh, and the GBTC discount is also a problem.
What do you think about trading GBTC with 35% off bitcoin spot prices this week? Let us know what you think about this in the comments section below.
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