GBTC's discount to NAV narrows as Bitcoin ETF race kicks off

Quick Take

  • GBTC’s discount to NAV has decreased from 44.02% on June 13 to 31.32% on June 23, according to The Block’s data dashboard. 

Grayscale's flagship Bitcoin Trust has seen its discount to net asset value shrink in the wake of a flurry of new filings for spot bitcoin exchange-traded funds, according to The Block's data dashboard. 

GBTC was trading at a 31.32% discount to NAV on June 23, a decline from a discount of 44.02% on June 13. Shares of GBTC can trade at a discount or premium to bitcoin depending on investor demand. Until early 2021, shares in the fund traded at a premium before flipping to a discount following a wide-spread crypto credit crunch. 

The narrowing of the discount likely reflects investor confidence in GBTC upgrading to an exchange-traded fund, which the US Securities and Exchange Commission has so far blocked. The asset manager is suing the agency over this matter. 

BlackRock's filing for a Bitcoin ETF

The entrance of BlackRock into the race for spot bitcoin ETF approval has provided a new glimmer of hope for issuers that an ETF might ultimately receive a greenlight.

Indeed, Bloomberg's Eric Balchunas described BlackRock's surprise filing as a move that "breathed new life into the race."

Since its filing on June 15, a number of issuers — including WisdomTree and Invesco — have resubmitted filings for their own funds following BlackRock's lead. 

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