- The discount between the price of Grayscale Bitcoin Trust (GBTC) and the value of Bitcoin reached its lowest level since December 2021, dropping to 18.06% this morning, according to Coinglass data.
- One GBTC share represents 0.00090089 BTC. On August 29th, the price of Bitcoin represented by one GBTC share was $25.09, while the GBTC price was $20.56.
- Craig Salm, the Chief Legal Officer of Grayscale, added that the company will work closely with the SEC to bring GBTC to NYSE Arca as a spot Bitcoin ETF.
The discount rate in Grayscale’s GBTC has reached its lowest level since December 2021; Will the discount rate continue to decrease?
The Discount Rate of GBTC Decreased with a Court Decision
The discount between the price of Grayscale Bitcoin Trust (GBTC) and the value of Bitcoin reached its lowest level since December 2021, dropping to 18.06% this morning. Currently, Grayscale Bitcoin Trust holds $17.10 billion worth of Bitcoin.
This move came after Grayscale’s historic victory against the SEC yesterday. The DC Circuit Court stated that the Commission lacked a consistent statement to prevent the conversion of GBTC product into a spot Bitcoin ETF.
One GBTC share represents 0.00090089 BTC. On August 29th, the price of Bitcoin represented by one GBTC share was $25.09, while the GBTC price was $20.56. Share prices have been trading at a discount compared to the market value of Bitcoin since February 2021 and reached nearly 50% lower levels in December 2022.
The inability to easily convert GBTC into Bitcoin within a closed-end fund like Grayscale significantly reduces its demand compared to other alternatives such as leveraged futures Bitcoin ETFs and ProShares Bitcoin Strategy ETF, leading to the famous discount.
Recently, the first spot Bitcoin ETF in Europe, Jacobi FT Wilshire Bitcoin ETF, started trading on the Amsterdam stock exchange on August 15th.
SEC Still Has Not Evaluated the Bitcoin ETF
The court ruled in favor of Grayscale and deemed the reasons for blocking the Bitcoin ETF as “unlawful,” but the decision still depends on the SEC’s authority to approve, reject, or delay the decision.
Grayscale CEO Michael Sonnenshein said the legal victory brought them “one step closer” to realizing a spot Bitcoin ETF in the US. Craig Salm, the Chief Legal Officer of Grayscale, added that the company will work closely with the SEC to bring GBTC to NYSE Arca as a spot Bitcoin ETF. However, the continued decrease in the discount will depend on the SEC’s final decision. Tim Devan, CEO of ETC Group, said:
“The chances have increased, but the SEC still has the possibility to reject applications on appeal or for other reasons. If they receive clear signals that the SEC will not act, the discount, which has significantly narrowed this year, may expand again.”
Discount Rate in Grayscale Bitcoin Trust Fund at the Lowest Level in 18 Months! news was first published on CoinOtag.
