GBTC discount to NAV hits lowest level since 2021 as SEC elects not to appeal Grayscale ruling
The Grayscale Bitcoin Trust (GBTC) discount has fallen to its lowest level in nearly two years as the Securities and Exchange Commission (SEC) fails to appeal against the recent Grayscale ruling. The GBTC discount to net asset value (NAV) — meaning how much lower the market price of each share is than the value of the bitcoin it represents — is trading below 16% for the first time since December 2021, hitting 15.9% by market close on Friday, according to The Block’s data dashboard.
GBTC trades at a discount as the shares currently cannot be redeemed, so the only option is to sell them to other prospective buyers. However, it historically traded at a premium until 2021’s crypto credit crunch. The narrowing trend — seeing the discount shrink from over 40% before BlackRock and others filed spot bitcoin ETF applications in June — is likely a sign of increased optimism the SEC will approve a spot bitcoin ETF in the U.S., including the potential conversion of GBTC. However, the decision not to appeal doesn’t necessarily mean the regulator is ready to approve one. The SEC had until midnight on Friday to appeal the ruling involving Grayscale's attempt to convert its flagship GBTC fund into a spot bitcoin ETF.
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