Grayscale GBTC discount falls to 16% as markets bet on Bitcoin ETF approval

Grayscale GBTC discount falls to 16% as markets bet on Bitcoin ETF approval

Grayscale’s Bitcoin (BTC) investment vehicle, Grayscale Bitcoin Trust (GBTC), is trading at its lowest discount in nearly two years as spot Bitcoin exchange-traded funds (ETFs) continue to inch toward potential approval in the United States.

The latest data from YCharts shows GBTC’s discount to Bitcoin’s net asset value (NAV) has narrowed to 15.87% as of Oct. 13.

Discount to NAV is a percentage that measures the amount that a mutual fund or ETF is trading below its net asset value. The metric is used to track how far away a security is trading from its true value.

Data shows that GBTC’s discount began to narrow when BlackRock and several other financial institutions filed spot Bitcoin ETF applications in mid-June, where the discount fell from 44% on June 15 to 26.7% by July 5. Since then, the figure has continued to narrow.

GBTC’s Discount to NAV chart over the last 12 months. Source: YCharts

The last time GBTC’s discount was at a similar level was in early December 2021 — only a month after BTC hit its all-time high price of $69,000 on Nov. 10, according to CoinGecko.

Bitcoin advocate Oliver Velez believes the market is pricing in spot Bitcoin ETF approval by year’s end.

Other analysts, such as cryptocurrency investor Lyle Pratt, believe GBTC’s discount will continue to “evaporate” over the next week or two as spot Bitcoin ETFs near approval.

Reports emerged that the United States Securities and Exchange Commission wouldn’t appeal the Grayscale decision on Oct. 13, leading to Bloomberg ETF analyst James Seyffart referring to spot Bitcoin ETF approvals as a “done deal” in an Oct. 13 post.

Related: ETF filings changed the Bitcoin narrative overnight — Ledger CEO

On Oct. 15, Grayscale reportedly delivered a statement noting that the SEC’s 45-day period to seek a rehearing had passed, meaning the court would issue its “final mandate” within seven calendar days.

“The Grayscale team remains operationally ready to convert GBTC to an ETF upon the SEC’s approval, and we look forward to sharing more information as soon as practicable,” the company reportedly said.

Cointelegraph reached out to Grayscale for comment but did not receive an immediate response.

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