The actions of Grayscale Bitcoin Trust (GBTC)the crown jewel of the Connecticut-based cryptocurrency money manager, have plunged to a record discount relative to net asset value (NAV).
According to data provided by financial software company YCharts, the GBTC discount hit another all-time low of $30.79.
The largest Bitcoin fund has now been trading in discount territory since February 2021.
GBTC holdings are down 49.87% to $18.3 billion in assets under management, indicating a decline in institutional support. Large institutions make up a substantial portion of GBTC owners.
While the idea of buying shares at a deep discount relative to Bitcoin may seem attractive, it is worth noting that investors must hold shares for at least half a year before selling them on the secondary market.
Grayscale is desperately trying to turn the struggling fund into an ETF listed on the New York Stock Exchange. During a private meeting with the SEC earlier this month, the company said such a move would unlock $8 billion worth of value for investors. The persistent discount would evaporate after the possible conversion.
The SEC is supposed to issue its verdict before July 6. The approval of the first points-based Bitcoin ETF would be a watershed moment for cryptocurrencies. However, the recent accident makes it even more unlikely.
As reported by Cryptoreport, Grayscale recently submitted documents to make three of its trusts SEC reporting companies (Grayscale Zcash Trust, Grayscale Horizen Trust, and Grayscale Stellar Lumens Trust).
At the end of April, the company also announced its intention to enter the crowded European market.
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