Posted 11/29/2023, 8:22:49 PM
Grayscale Bitcoin Trust Discount Narrows on Optimism for SEC Approval of Spot BTC ETF
- Grayscale Bitcoin Trust (GBTC) is trading at a narrow 8% discount to its Bitcoin holdings, down from 50% entering 2023
- The shrinking GBTC discount reflects growing optimism that the SEC will approve a spot Bitcoin ETF
- GBTC has persistently traded at a discount due to its closed-end structure with no redemption mechanism
- Speculation that Grayscale could convert GBTC into an ETF has driven huge inflows this year
- Even if approved, GBTC could see major outflows as investors take profits and fees remain higher than proposed spot Bitcoin ETFs