Grayscale’s Bitcoin investment vehicle, the Grayscale Bitcoin Trust (GBTC), is currently trading at its lowest discount level in nearly two years, as Bitcoin ETF spot funds continue to advance towards potential approval in the United States.
The latest data from YCharts shows that GBTC’s discount to its Net Asset Value (NAV) has narrowed down to 15.87% as of October 13th. The discount to NAV is a percentage that measures how much an exchange-traded fund (ETF) or mutual fund is trading below its net asset value. This figure is used to track whether a security is trading far below its actual value.
The GBTC discount started to narrow when BlackRock and several other financial organizations applied for Bitcoin ETF spot funds in mid-June. The discount decreased from 44% on June 15th to 26.7% on July 5th. Since then, it has continued to decrease.
According to CoinGecko, the last time GBTC’s discount was at a similar level was in early December 2021, just one month after BTC reached its all-time high of $69,000 on November 10th.
Bitcoin advocate Oliver Velez believes that the market is pricing in the approval of Bitcoin ETF spot funds later this year.
Other analysts, such as cryptocurrency investor Lyle Pratt, believe that GBTC’s discount will continue to “evaporate” in the coming weeks as Bitcoin spot ETF funds near approval.
This narrowing of the GBTC discount reflects growing optimism in the cryptocurrency market regarding the potential approval of Bitcoin ETF spot funds in the United States. Investors and market participants are closely watching these developments as they could have a significant impact on the cryptocurrency market.