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Grayscale’s Bitcoin investment product, Grayscale Bitcoin Trust (GBTC), is currently trading at its lowest discount in almost two years, as spot Bitcoin ETFs are gradually moving closer to potential approval in the United States.
Recent data from YCharts indicates that GBTC’s discount to Bitcoin net asset value (NAV) has decreased to 15.87% as of October 13.
The discount to net asset value (NAV) represents a percentage that indicates how much a mutual fund or ETF is trading below its net asset value. This metric is utilized to assess how far a security is trading from its actual value.
Data reveals that GBTC’s discount began to decrease when BlackRock and several other financial entities submitted applications for spot Bitcoin ETFs in mid-June, with the discount dropping from 44% on June 15 to 26.7% by July 5. Since that time, the figure has continued to decline.
GBTC’s Discount to NAV chart over the last 12 months. Source: YCharts
The last occasion when GBTC’s discount was at a comparable level was in early December 2021 — just a month after BTC reached its all-time high price of $69,000 on November 10, according to CoinGecko.
Bitcoin supporter Oliver Velez believes that the market is anticipating spot Bitcoin ETF approval by the end of the year.
Other analysts, including cryptocurrency investor Lyle Pratt, suggest that GBTC’s discount will continue to “evaporate” in the coming week or two as spot Bitcoin ETFs approach approval.
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THE GBTC DISCOUNT HAS NARROWED TO 16% AS THE MARKET BETS ON A BITCOIN SPOT ETF APPROVAL.
Grayscale’s Bitcoin Trust, commonly referred to as GBTC, has undergone significant changes in its market dynamics. At the beginning of this year, GBTC was trading at a considerable discount of 48.31%… pic.twitter.com/2nWLmvnewb— The Wolf Of All Streets (@scottmelker) October 13, 2023
Reports surfaced that the SEC would not appeal the Grayscale decision on October 13, prompting Bloomberg ETF analyst James Seyffart to describe spot Bitcoin ETF approvals as a “done deal” in a post on the same day.
Related: ETF filings changed the Bitcoin narrative overnight — Ledger CEO
On October 15, Grayscale reportedly issued a statement indicating that the SEC’s 45-day period to request a rehearing had elapsed, meaning the court would issue its “final mandate” within seven calendar days.
"The Grayscale team remains operationally prepared to convert GBTC to an ETF upon the SEC’s approval, and we look forward to providing more information as soon as possible," the company reportedly stated.
NEW: Statement from @Grayscale on the @SECGov’s decision to not seek a rehearing:
“The Federal Rules of Appellate Procedure’s 45-day period to seek rehearing has now passed. The Court will now issue its final mandate within seven calendar days. The Grayscale team remains…— Eleanor Terrett (@EleanorTerrett) October 15, 2023
Cointelegraph reached out to Grayscale for a comment but did not receive an immediate reply.
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