Grayscale’s Bitcoin investment vehicle, Grayscale Bitcoin Trust (GBTC), is trading at its lowest discount in nearly two years as spot Bitcoin ETFs continue to gain approval in the United States.
Latest data from YCharts programme As of October 13, GBTC’s discount to Bitcoin’s net asset value (NAV) has narrowed to 15.87%.
Discount to Net Asset Value (NAV) is a measure of the percentage by which a mutual fund or ETF trades for less than its net asset value. This indicator is used to track the distance between a security’s trading and its true value.
Data shows that after several financial institutions such as BlackRock submitted applications for spot Bitcoin ETFs in mid-June, GBTC’s discount began to narrow, with the discount falling from 44% on June 15 to 26.7% on July 5. Since then, this number has continued to shrink. narrow.
The last time GBTC saw a similar level of discount was in early December 2021, just a month after BTC hit an all-time high of $69,000 on November 10. according to Go to CoinGecko.
Bitcoin Advocate Oliver Velez believe The market is pricing in a spot Bitcoin ETF to be approved by the end of the year.
Other analysts such as cryptocurrency investor Lyle Pratt believe With the spot Bitcoin ETF on the verge of approval, the GBTC discount will continue to “disappear” over the next week or two.
The GBTC discount has narrowed to 16% as markets bet on the approval of a Bitcoin spot ETF.
Market dynamics for Grayscale’s Bitcoin Trust, commonly known as GBTC, have experienced significant changes. At the beginning of this year, GBTC’s trading price was significantly discounted by 48.31%… pic.twitter.com/2nWLmvnewb
— Wolf on the Street (@scottmelker) October 13, 2023
There are reports that the SEC will not appeal the Grayscale decision on October 13, said Bloomberg ETF analyst James Seyffart refer to An article on October 13 found that the approval of the Bitcoin ETF was “completed.”
related: ETF filing changes Bitcoin narrative overnight – Ledger CEO
According to reports, on October 15, Grayscale issued a statement stating that the SEC’s 45-day deadline for seeking a retrial has expired, which means that the court will issue a “final authorization” within 7 calendar days.
The company reportedly said: “Subject to SEC approval, the Grayscale team remains ready to convert GBTC into an ETF, and we look forward to sharing more information soon.”
New: Statement from @ Grayscale At @SECGovDecide not to seek rehearing:
“The 45-day period under the Federal Rules of Appellate Procedure for seeking rehearing has now passed. The court will now have seven calendar days to issue a final authorization. The Grayscale team remains…
— Eleanor Terrett (@EleanorTerrett) October 15, 2023
Cointelegraph reached out to Grayscale for comment but did not immediately receive a response.
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