Grayscale’s GBTC discount hits a record 19%

On April 22, the discount of Grayscale Investments’ Bitcoin Trust (GBTC) shares to the net asset value (NAV) fell to 18.92%. The discount has been in place since February 23.

One reason for the discount was Grayscale’s temporary suspension of deposits into GBTC.

In April, one of the holders of the Bitcoin Trust’s shares, investment firm Marlton, wrote an open letter to the management urging to restore clients’ ability to invest in this product.

In Arcane Research, among other reasons for the discount, they named the emergence of alternative instruments, the launch of bitcoin funds, and direct purchases of the cryptocurrency by individual companies.

Recently the Canadian regulator approved a third exchange-traded fund based on the first cryptocurrency (ETF), available to investors including in U.S. dollars. A similar instrument also received listing in Brazil.

In the spring of 2021 the U.S. Securities and Exchange Commission (SEC) began reviewing two ETF applications from WisdomTree and VanEck.

As noted, Grayscale plans to convert GBTC into an exchange-traded fund based on digital gold. In March the company posted nine job openings related to this initiative.

Earlier, Grayscale launched five new crypto funds. Before that, the firm filed applications to register six more trusts.

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