Summary:
- Grayscale Bitcoin Trust (GBTC) is trading at its lowest discount in nearly two years.
- GBTC’s discount to Bitcoin net asset value (NAV) has narrowed to 15.87% as of Oct. 13.
- Market expects potential approval of spot Bitcoin ETFs in the United States.
- GBTC’s discount began to narrow when BlackRock and other financial institutions filed spot Bitcoin ETF applications.
- Bitcoin advocate Oliver Velez and analyst Lyle Pratt believe GBTC’s discount will continue to decrease as spot Bitcoin ETFs near approval.
Details:
Grayscale’s Bitcoin investment vehicle, Grayscale Bitcoin Trust (GBTC), is currently trading at its lowest discount in nearly two years. This comes as markets anticipate the potential approval of spot Bitcoin ETFs in the United States.
According to the latest data from YCharts, GBTC’s discount to Bitcoin net asset value (NAV) has narrowed to 15.87% as of Oct. 13. The discount to NAV is a percentage that measures how much a mutual fund or ETF is trading below its net asset value, indicating how far the security is trading away from its true value.
Data shows that GBTC’s discount started to narrow when BlackRock and several other financial institutions filed spot Bitcoin ETF applications in mid-June. Since then, the discount has continued to decrease. The last time GBTC’s discount was at a similar level was in early December 2021.
Bitcoin advocate Oliver Velez believes that the market is pricing in spot Bitcoin ETF approval by the end of the year. Similarly, analyst Lyle Pratt expects GBTC’s discount to continue to decrease over the next week or two as spot Bitcoin ETFs near approval.
Conclusion:
The discount on Grayscale Bitcoin Trust (GBTC) has fallen to 16% as markets bet on the potential approval of spot Bitcoin ETFs in the United States. This marks the lowest discount level in nearly two years and indicates growing optimism in the market. Bitcoin advocate Oliver Velez and analyst Lyle Pratt both believe that GBTC’s discount will continue to decrease as spot Bitcoin ETFs approach approval.
