The Grayscale Bitcoin Trust (GBTC) product, which has been consistently trading at a discount for almost three months, hit a new record low on Tuesday.
GBTC's discount hit -20.48% — its lowest point in history, according to data compiled by The Block. The discount means the market price of GBTC shares is over 20% lower than its net asset value or NAV.
GBTC first started trading at a discount in late February. As The Block reported, there are several factors behind the GBTC's fall, including new competitive products in the market, such as Canadian bitcoin exchange-traded funds (ETFs).
The consistent GBTC discount recently led investment management firm Marlton, which holds a considerable amount of GBTC shares, to write an open letter to Grayscale. Marlton asked Grayscale to conduct a tender offer of its shares since the discount has caused heavy losses for stakeholders.
DCG is buying large amounts of GBTC shares
Earlier this month, Grayscale's parent company, Digital Capital Group, announced plans to buy an additional $500 million worth of GBTC shares, taking its total limit to up to $750 million. As of April 30, the group has purchased $193.5 million worth of GBTC shares.
Market experts recently told The Block that converting GBTC into a bitcoin ETF could be the best solution for Grayscale. The firm recently said that it is "100% committed" to turning GBTC into a bitcoin ETF, but the firm's CEO Michael Sonnenshein said the regulatory environment in the U.S. still isn't ready.
U.S. regulators have yet to approve a bitcoin ETF in the country. The Securities and Exchange Commission recently delayed a determination on a proposed bitcoin ETF from VanEck.
In separate news, Grayscale announced Thursday that it voluntarily filed for Form 10 with the SEC for its Grayscale Digital Large Cap Fund (GLDC) product. If effective, it would designate GDLC as Grayscale's third crypto investment product to become an SEC reporting company, following GBTC and Grayscale Ether Trust in the U.S.