2023-11-26 10:03:23
On Friday, GBTC’s discount to Grayscale Bitcoin Trust’s net asset value (NAV) shrank to single digits for the first time in 2023. According to the data, GBTC’s discount reached 8.06%, which was last observed two years ago. GBTC’s discount to net asset value has become single digits Grayscale Bitcoin Trust (GBTC) is the world’s largest bitcoin trust. As of November 24, 2023, its total assets under management (AUM) was approximately $23.50 billion. GBTC is trading at a significant discount to net asset value this year, and by September 2022, the discount has increased by over 35%. A discount or premium relative to the net asset value arises when the market price of a fund’s shares is lower or higher than the net asset value. NAV, i.e. net asset value, essentially means the value per share of the fund’s assets minus the daily calculated value of the fund’s liabilities. When a fund’s shares are trading at a discount, it means that they are being sold at a price lower than the fund’s asset value per share. A significant discount compared to NAV, such as 35%, is not really favorable, as it indicates that the fund’s shares are trading at a significantly lower price than the actual value of the assets they represent. However, after Grayscale won a lawsuit against the US Securities and Exchange Commission (SEC), the discount dropped significantly. As a milestone, ycharts.com reports that GBTC reached the single-digit range for the first time in two years on November 22, 2023 at 9.77%. According to the statistics of November 24, 2023, the discount compared to the net asset value fell to 8.06%. After reaching a remarkable single-digit record, the attention of both the crypto community and financial analysts turned to this development. One crypto analyst noted that they “smell a spot ETF in the air,” and therefore reduced the discount to net asset value.
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