Grayscale Bitcoin Trust (GBTC) sees lowest discount in nearly two years
Grayscale's Bitcoin investment vehicle, Grayscale Bitcoin Trust (GBTC), is experiencing its lowest discount in almost two years as the market anticipates the potential approval of spot Bitcoin ETFs in the United States. According to data from YCharts, GBTC's discount to Bitcoin net asset value (NAV) has narrowed to 15.87% as of October 13.
Understanding the discount to net asset value (NAV)
The discount to net asset value (NAV) is a percentage that measures the difference between the trading price of a mutual fund or ETF and its net asset value. This metric helps track how far a security is trading away from its true value.
Grayscale's discount narrows amid Bitcoin ETF applications
Data shows that GBTC's discount began to narrow when BlackRock and other financial institutions filed spot Bitcoin ETF applications in mid-June. From a discount of 44% on June 15, it fell to 26.7% by July 5. Since then, the discount has continued to decrease.
Chart: GBTC's Discount to NAV over the last 12 months
Market expectations and analyst perspectives
The last time GBTC's discount was at a similar level was in early December 2021, just a month after Bitcoin reached its all-time high price of $69,000. Bitcoin advocate Oliver Velez believes that the market is pricing in the approval of spot Bitcoin ETFs by the end of the year. Cryptocurrency investor Lyle Pratt and other analysts also anticipate that GBTC's discount will continue to decrease over the next week or two as spot Bitcoin ETFs approach approval.
