GBTC sinks to record low — trading at a 19% discount

advertisement

The Grayscale Bitcoin Trust (GBTC) product, which is consecutively trading at a discount for two months, hit a record low on Thursday.

GBTC's premium fell to -18.92% — its lowest point in history, according to tracker YCharts. That means the market price of GBTC shares is about 19% lower than its net asset value or NAV.

Source: YCharts

GBTC started trading at a discount for the first time in late February. There are several factors behind the fall, as The Block reported last month.

These include new competitive products in the market, including Canadian bitcoin ETFs, selling pressure by large investors, and no new money entering into GBTC (Grayscale, the product's manager, halted new investments in GBTC last month).

Then Grayscale's parent Digital Capital Group said it would buy up to $250 million in GBTC shares, but that doesn't seem to have helped GBTC's discount.

The persistent discount led Marlton, an investment management firm with considerable holdings of GBTC, to write an open letter to Grayscale earlier this month. Marlton asked Grayscale to conduct a tender offer of its shares since the discount has translated to heavy losses for stakeholders. 

Market pundits recently told The Block that converting GBTC into a bitcoin ETF could be the best bet for Grayscale.

Grayscale recently announced that it is "100% committed" to turning GBTC into a bitcoin ETF. But the firm's CEO Michael Sonnenshein said the regulatory environment in the U.S. still isn't ready.

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

The TRON Ecosystem Thrives Amidst Market Chaos

TRON DAO has announced the launch of a $10 million incentive fund in light of recent events to support Terra developers migrating to the TRON ecosystem, including TRON’s EVM compatible cross-chain solution BitTorrent Chain (BTTC), which helps facilitate the seamless transfer of assets across mainstream public chains, including TRON, Ethereum, and BNB Chain. 
Read Full Story
Sponsored Post

Layer-2 Scaling Solutions: A Framework for Comparison - Commissioned by Polygon

Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
Read Full Story
May 5, 2022, 3:17PM UTC