GBTC 'discount' hits smallest since 2021 despite BTC price at 3-month lows - Best AI Sites
GBTC ‘discount’ hits smallest since 2021 despite BTC price at 3-month lows

Grayscale Bitcoin Trust (GBTC), the Bitcoin investment vehicle of Grayscale, is currently trading at a 17% discount to BTC price parity, as per CoinGlass monitoring resource.

The data from CoinGlass on Sept. 9 indicates that GBTC shares were priced 17.17% lower than BTC/USD.

GBTC retraces nearly two years of losses

Since BlackRock, the world’s largest asset manager, announced its intention to submit an application for the United States’ first Bitcoin spot price-based exchange-traded fund (ETF), the fortunes of GBTC, Bitcoin’s (BTC) largest institutional investment vehicle, have greatly improved.

Grayscale executives had already been engaged in a legal battle with U.S. regulators over the potential transformation of GBTC into a spot ETF. Despite the SEC’s lack of approval for any spot ETF application, Grayscale won a major victory in the fight last month, which gave a further boost to GBTC prices.

On September 9, the GBTC share discount to Bitcoin’s price, which was once referred to as the “GBTC Premium”, reached its highest level since December 2021 at 17.17%. Since then, the premium has been negative, meaning it has been a discount to the net asset value.

The discount even went as low as nearly 50% at one point.

No joy for Bitcoin bulls

GBTC has thus started to differ from the BTC price, with the latter still going downhill as it tests levels that have rarely been seen in the past six months.

At the time of writing, BTC price was trading under $25,500, as per the data from Cointelegraph Markets Pro and TradingView, with the Wall Street open adding fuel to the already weak market.

As Cointelegraph reported, September has a tendency to be a poor month for BTC/USD, which usually drops up to 10%.

“September is historically a pretty bad month for #Bitcoin, that’s just the facts. October is historically very bullish,” CryptoCon, a popular trader and analyst, mentioned to X followers on Sept. 11.

CryptoCon added a chart that highlights late November as a key time to watch for indications of life from Bitcoin during the prehalving years.

This supports an existing theory that suggests Nov. 28 as the “bull run launch” date for Bitcoin price every four years.

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