Grayscale Bitcoin Trust Sees Smallest Discount in Two Years
The Grayscale Bitcoin Trust (GBTC) is experiencing its smallest discount in almost two years, which is attributed to the growing anticipation for the potential approval of spot Bitcoin ETFs in the United States. According to recent data from YCharts, GBTC’s discount to Bitcoin’s net asset value (NAV) has contracted to 15.87% as of October 13.
The discount to NAV is an important metric that indicates how much a mutual fund or ETF is trading below its net asset value. It serves as a measure of the gap between the trading price of a security and its actual worth.
The narrowing of GBTC’s discount can be attributed to the filing of spot Bitcoin ETF applications by financial institutions like BlackRock in mid-June. The discount dropped from 44% on June 15 to 26.7% by July 5 and has been decreasing ever since.
Hot Take: Growing Optimism for Bitcoin ETF Approval
The shrinking discount of GBTC is a positive sign for crypto investors as it indicates growing optimism for the approval of spot Bitcoin ETFs in the U.S. This development suggests that investors are confident in the future prospects of Bitcoin and are willing to pay closer to its actual value.
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