Grayscale Bitcoin Trust (GBTC), which is trading at a negative premium for two months, hits a record low.
That means the market price of GBTC shares is about 19% lower than its net asset value or NAV.
A negative premium means the investor expects nothing in return for investing in that product.
The reasons behind negative Grayscale Bitcoin Trust were to temporarily suspend deposits in GBTC, other competitive products like Canadian Bitcoin ETFs, and large investors selling their BTC holdings.
In April, one of the holders of shares in the Grayscale Bitcoin Trust, the investment firm Marlton, wrote an open letter to the management of Grayscale, calling to open the opportunity to invest in GBTC.
Arcane Research pointed the emergence of alternative instruments like launch of Bitcoin ETF’s, and the purchase of the BTC directly by individual companies as reasons for the discount.
Recently, the Canadian regulator approved a exchange-traded fund (ETF) based on the BTC available to investors in US dollars. A similar instrument was also listed in Brazil.
In the spring of 2021, the U.S. Securities and Exchange Commission (SEC) began reviewing two applications to launch ETFs from WisdomTree and VanEck.
Recall that Grayscale plans to convert GBTC into an exchange-traded fund (ETF). In March, the company posted nine vacancies related to this initiative.
Market experts believe that converting GBTC into a Bitcoin ETF is the best alternative for Grayscale.
Grayscale recently announced that it is fully committed in changing GBTC into a Bitcoin ETF.