The Grayscale Bitcoin Trust (GBTC), which has been trading at a discount since the beginning of 2021, hit a record low last week.

GBTC's discount fell to -35.26% — its lowest point ever, according to The Block's Data Dashboard. This means the market price of GBTC shares is over 35% lower than its net asset value or NAV.

GBTC hit its previous all-time low on June 17, when it reached -34%. The discount narrowed ahead of the SEC's ruling on whether or not GBTC could be converted to a spot bitcoin ETF. 

Grayscale’s bid to convert its product into a spot ETF was rejected based on the regulator's conclusion that the company hadn’t shown sufficient planning to prevent fraud and manipulation. Grayscale later filed a lawsuit against the SEC after the decision. 

Friday's low comes amid a broader market downturn for cryptocurrencies and financial markets. Bitcoin was trading at $19,173 at the time of writing on Monday, per data via Coinbase. 

Last week the U.S. Federal Reserve raised the U.S. federal funds rate by 75 basis points, marking a 15-year high. The decision to take the rate from 3% to 3.25% was expected, with the market pricing in a rise of 75 basis points ahead of time. However, markets sold off sharply on the news.

Crypto markets have been tightly tracking equities as of late, as the correlation between the Nasdaq and bitcoin has reached its highest point since May.

Before last week, markets dipped following the release of hotter-than-expected U.S. inflation data of 8.3% year-on-year.