Grayscale’s GBTC Discount Closes to Zero for First Time Since February 2021
Summary
Grayscale's bitcoin fund (GBTC) has reached a 0% discount to its net asset value (NAV) after the SEC approved its conversion into a spot bitcoin exchange-traded fund (ETF). The discount had previously hit record lows of nearly 50% in December 2022. The lack of a redemption mechanism in the fund caused the discount, leading to underperformance for individual investors and credit blowups. With the conversion to an ETF, the premium/discount is expected to vary only by a few basis points from par moving forward. The approval raises the probability of a spot ether ETF, potentially impacting Grayscale's Ethereum Trust (ETHE).
