Grayscale Bitcoin Trust Discount Narrows as Investors Anticipate Possible ETF Conversion
• Grayscale Bitcoin Trust (GBTC) owns spot Bitcoin and could get SEC approval to become a true Bitcoin ETF, giving early investors a potential double win
• Grayscale trust launched to give investors exposure to Bitcoin price changes; shares aren't redeemable for Bitcoin
• In 2021, GBTC traded at a 25% premium but plunged to a 50% discount during 2022's crypto crash
• In 2023, the discount has narrowed to 12% with rising Bitcoin prices and demand for trust shares
• If approved as an ETF, arbitrage would likely eliminate the discount, delivering gains on top of Bitcoin price increases