The discount on Grayscale’s Bitcoin Trust known as GBTC continued to shrink as of Nov. 27, likely due to mounting anticipation for a regulatory nod toward spot Bitcoin ETFs.
GBTC’s discount to net asset value (NAV) gradually fell to 8%, seemingly fueled by industry hype surrounding a raft of spot Bitcoin ETF filings from issuers like BlackRock and conviction from crypto proponents that the Securities and Exchange Commission (SEC) would soon approve such crypto-based financial products for the first time.
Discount to NAV is regarded as an important metric for determining the difference between a fund’s trading price and the value of its underlying asset, in this case, Bitcoin (BTC) which traded around $36,800 at press time, per CoinMarketCap.
The descent to these levels formed a new two-year low not seen since late 2021 when BTC and the broader crypto market raced to all-time highs at the time. Previously, the discount on Grayscale’s BTC fund had dropped to 15.8% by mid-October 2023.
Eric Balchunas, a Bloomberg ETF expert, said GBTC’s shrinking discount signals an accumulating narrative in favor of the SEC’s acceptance of a spot Bitcoin ETF.
$GBTC discount down to 8% in what is quickly becoming a Top 5 ETF chart of the year, not only is it visually stunning but it is a graphical representation of the slow-growing level of optimism over the past six months that a spot ETF will finally be approved.
Eric Balchunas via X
Although word from the SEC only disclosed a review of applications, issuers like Grayscale, ARK Invest, and WisdomTree to name a few, have filed amendments to their initial bids for a spot Bitcoin ETF.
Crypto proponents and ETF experts alike opined that the updated filings indicate constructive talks with the securities watchdog toward greenlighting products that could inject billions into Bitcoin.
Source: https://crypto.news/bitcoin-etf-desire-narrows-grayscale-gbtc-discount-to-8/