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GBTC discount decreases to 33% as buyout speculation and renewed interest in spot Bitcoin ETFs emerge.
On June 20, shares of Grayscale’s Bitcoin Trust (GBTC) experienced an 11% increase, reaching $16.85, which reduced the discount to its net asset value (NAV) to 33.45%—the highest level observed since the start of the year, as per data from YCharts.
Source: Ycharts
Wu Blockchain, referencing data from CryptoQuant, noted that this rise coincided with a record trading volume of $10.24 million—the highest since November 22, 2022.
In terms of year-to-date performance, a report from CryptoSlate Insight indicated that GBTC has surged by 96%.
BlackRock’s ETF application sparks interest in GBTC
The renewed enthusiasm surrounding GBTC shares has been attributed to BlackRock’s application for a Bitcoin spot ETF. Wu highlighted that the announcement of BlackRock’s application has contributed to a rally in GBTC shares exceeding 25%.
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Unverified reports have also indicated that Fidelity Investment may be contemplating a buyout of Grayscale. Fidelity ranks as the third-largest asset manager globally, overseeing $4.24 trillion in assets.
Richard Byworth, a partner at Syz Capital, remarked that a Fidelity acquisition offer for GBTC would “likely see the discount correct to zero rapidly.”
Grayscale’s initiative to convert GBTC into an ETF
Similar to various other firms, Grayscale has pursued the establishment of a spot Bitcoin ETF for several years but has faced repeated rejections from the U.S. Securities and Exchange Commission.
The Commission stated that these applications were denied because they did not meet specific provisions of the Securities Exchange Act and failed to adequately prevent fraud and market manipulation or safeguard investors and public interests.
Nonetheless, these ongoing denials prompted Grayscale to initiate legal action against the SEC, contending that a spot ETF is not fundamentally different from a futures ETF—which the SEC had previously approved. Grayscale argued that both spot and futures ETFs depend on Bitcoin’s price and therefore entail similar risk levels, irrespective of their trading venues.
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