GBTC Discount Hits All-Time Low as SEC Mulls Bitcoin ETF GBTC | bitcoin crypto news

GBTC Discount Hits All-Time Low as SEC Mulls Bitcoin ETF

GBTC is a private-placement trust that trades like a stock and allows investors to get exposure to Bitcoin without actually having to buy the asset. The firm takes care of the custody in exchange for an annual management fee of 2%, while buyers acquire shares in the fund.

A massive discount to NAV may seem like a bargain, as it allows investors to buy “shares” in Bitcoin below the actual market value, however, it also comes with a catch, as GBTC has a six-month lockup period.This means that the fund’ existing holders are running at a loss as the only way for them to cash in is to sell shares.According to Grayscale’s website, GBTC currently holds $18.3 billion in assets under management.