Grayscale’s GBTC Climbs New Record of 36.7% Discount

Grayscale’s GBTC Climbs New Record of 36.7% Discount


It has been a dull weekend for Bitcoin struggling to clear the $20,000 resistance zone.

Further indicating a potential case of dwindling institutional interest in the flagship cryptocurrency is the Grayscale Bitcoin Trust (GBTC) discount registration a new record high.

  • It was currently trading at a 36.7% discount against BTC spot prices, setting the largest discount in the history of the Bitcoin fund.
  • The increased figures could also signal that players are looking at other alternative vehicles for BTC investments, such as exchange-traded funds (ETFs).
  • Arcane Research recently stated:

“There are good arguments to be made to invest in GBTC at current discounts. The fact that discounts haven’t narrowed suggests that Wall Street is either overlooking BTC opportunities or reluctant to commit to a long-term play on BTC. As sentiment improves, GBTC’s discount may narrow. In turn, GBTC may absorb some of the BTC demand and thus reduce some potential upside in BTC.”

  • Today, GBTC is the largest BTC fund, managing 635,240 BTC, worth around $12 billion. That’s over 3.3% of the circulating supply of the cryptocurrency.
  • Since 2015, GBTC has been trading at a positive premium of nearly 20% but flipped to a negative premium last year. The average discount throughout the period was 19%.
  • It is worth noting that the gap formed after the launch of Purpose Bitcoin ETF on the Toronto Stock Exchange last February.
  • The SEC has been hostile towards a spot ETF. The commission recently stonewalled WisdomTree’s application for one in the United States. As a result, big players are flocking in other Bitcoin-linked funds that hit the market.
  • Meanwhile, Grayscale filed a lawsuit against the SEC regarding converting GBTC into a spot-based Bitcoin ETF.
  • The asset manager had claimed that the regulatory agency treats spot Bitcoin ETPs with “special harshness” and its assstment for the same is “arbitrary, capricious, and discriminatory.”

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