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The Grayscale Bitcoin Trust (GBTC), an investment vehicle for Bitcoin (BTC), is currently trading at a mere 17% below the price of BTC.
Recent information from the monitoring platform CoinGlass indicates that as of September 9, shares of GBTC were priced at 17.17% lower than BTC/USD.
GBTC recovers nearly two years of declines
As the largest institutional investment vehicle for Bitcoin, GBTC has experienced a notable turnaround following the announcement from BlackRock, the largest asset management firm globally, regarding its intention to file for the first Bitcoin spot price-based exchange-traded fund (ETF) in the United States.
This development was welcomed by Grayscale executives, who were already engaged in a legal dispute with U.S. regulators aimed at converting GBTC into a spot ETF.
The U.S. Securities and Exchange Commission (SEC) has yet to approve any spot ETF applications, having recently postponed decisions on several proposals.
Nevertheless, Grayscale achieved a significant victory against the SEC last month, providing a positive boost to the industry that further enhanced GBTC’s price performance.
The discount of GBTC shares relative to the Bitcoin price—previously known as the “GBTC Premium”—was recorded at 17.17% on September 9, representing its most favorable position since December 2021.
This premium has been negative, referred to as a discount to net asset value (NAV), since then, reaching nearly 50% at one point.
GBTC premium vs. asset holdings vs. BTC/USD chart (screenshot). Source: CoinGlass
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Consequently, GBTC has started to diverge from the strength of BTC prices, which continue to decline as it tests levels not frequently observed in the past six months.
Related: Double top ‘likely’ confirmed — 5 things to know in Bitcoin this week
At the time of writing, BTC was trading below $25,500, according to data from Cointelegraph Markets Pro and TradingView, with the Wall Street opening contributing to an already weak market.
As reported by Cointelegraph, September is typically a challenging month for BTC/USD, often resulting in losses of up to 10%.
“September is historically a pretty bad month for Bitcoin, that’s just the facts. October is historically very bullish,” noted popular trader and analyst CryptoCon in a commentary shared with X followers.
CryptoCon also highlighted a chart indicating late November as a crucial period to observe for signs of recovery in Bitcoin during pre-halving years.
This aligns with an existing theory that specifically identifies November 28 as the “bull run launch” date for Bitcoin price every four years.
BTC/USD annotated chart. Source: CryptoCon/X
This article does not provide investment advice or recommendations. All investment and trading activities carry risks, and readers should perform their own research before making any decisions.
