Friday, September 22, 2023

GBTC ‘discount’ falls despite Bitcoin price at 3-month low


Grayscale’s Bitcoin investment vehicle, the Grayscale Bitcoin Trust (GBTC), is currently trading 17% below BTC’s price parity.

The latest data from the monitoring resource CoinGlass confirms that on September 9, GBTC shares were traded 17.17% lower than the BTC/USD pair.

GBTC recovered nearly two years of losses

GBTC, the largest institutional Bitcoin (BTC) investment vehicle, has seen its fortunes grow significantly since BlackRock, the world’s largest asset manager, announced that it plans to file for the first exchange-traded fund (ETF) in the world. Bitcoin spot price in the United States.

This is music to the ears of Grayscale executives, who are already in the middle of a legal battle with US regulators to convert GBTC into a spot ETF.

The US Securities and Exchange Commission has yet to approve a spot ETF application, recently delaying a decision on several projects.

Despite this, Grayscale last month won a significant showdown with the SEC, which ensured positive momentum for the industry, further boosting GBTC’s price performance.

The discount of GBTC stock to the price of Bitcoin, which was previously a surplus known as “GBTC Premium,” was only 17.17% on September 9, marking the best level since December 2021.

The premium has been negative, known as the discount to net asset value, since then. At one point, it reached almost 50%.

Gbtc 'Discount' Falls Despite Bitcoin Price At 3-Month Low

No joy for the Bitcoin bulls

GBTC has started to deviate from the price stability of BTC, with the latter further down as it retests levels rarely seen in the last six months.

The price of BTC is trading below $25,500 at the time of writing, according to data from Cointelegraph Markets Pro and TradingView, with the Wall Street open adding fuel to a weak market.

As reported by Cointelegraph, September is likely to be a weak month for BTC/USD, which often loses up to 10%.

“Historically, September was a bad month for #Bitcoin, those are the facts. October was historically strong,” the popular CryptoCon trader and analyst told his followers in your comment section September 11.

CryptoCon has added a chart that points to late November as a key time to see signs of Bitcoin’s life in the years leading up to its emergence.

This echoes an existing theory that sets November 28 as the date of the “bull run” for the price of Bitcoin once every four years.

Gbtc 'Discount' Falls Despite Bitcoin Price At 3-Month Low
Explanation chart of BTC/USD pair. Source: CryptoCon/X
Nation World News Desk
Nation World News Desk
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