Grayscale's Bitcoin investment vehicle, Grayscale Bitcoin Trust (GBTC), is trading at its lowest discount in nearly two years, as spot Bitcoin ETFs continue to inch toward possible approval in the United States.
The latest data from YCharts sample GBTC's discount to Bitcoin's net asset value (NAV) has narrowed to 15.87% as of October 13.
Discount to net asset value (NAV) is a percentage that measures the amount a mutual fund or ETF trades below its net asset value. The metric is used to track how far a security is trading from its actual value.
The data shows that the GBTC discount started to narrow when BlackRock and several other financial institutions archived detect Bitcoin ETF applications in mid-June, where the discount fell from 44% on June 15 to 26.7% on July 5. Since then, the number has continued to narrow.
The last time the GBTC discount was at a similar level was in early December 2021, just a month after BTC hit its all-time high price of $69,000 on November 10. according to CoinGecko.
Oliver Vรฉlez, Bitcoin advocate believe The market is pricing in the approval of the Bitcoin Spot ETF by the end of the year.
Other analysts, such as cryptocurrency investor Lyle Pratt believe The GBTC discount will continue to โevaporateโ over the coming weeks as Bitcoin ETFs move closer to approval.
THE GBTC DISCOUNT HAS REDUCED TO 16% AS THE MARKET BETS ON THE APPROVAL OF A BITCOIN SPOT ETF.
Grayscale's Bitcoin Trust, commonly known as GBTC, has seen notable changes in its market dynamics. Earlier this year, GBTC was trading at a significant discount of 48.31%... pic.twitter.com/2nWLmvnewb
- The wolf of all the streets (@scottmelker) October 13, 2023
Reports emerged that the The SEC would not appeal Grayscale's decision on October 13, leading Bloomberg ETF analyst James Seyffart Referrer to spot Bitcoin ETF approvals as a โdone dealโ in an October 13 post.
Related: ETF Filings Changed Bitcoin Narrative Overnight: Ledger CEO
On October 15, Grayscale reportedly provided a statement noting that the SEC's 45-day period to request a rehearing had passed, meaning the court would issue its โfinal orderโ within seven calendar days.
"The Grayscale team remains operationally ready to convert GBTC into an ETF following SEC approval, and we look forward to sharing more information as soon as possible," the company reportedly said.
NEW: Declaration of @Grayscale about him @SECGovThe decision not to request a new hearing:
โThe 45-day period established by the Federal Rules of Appellate Procedure to request a rehearing has passed. The Court will now issue its final mandate within seven calendar days. The Grayscale team remains...
โEleanor Terrett (@EleanorTerrett) October 15, 2023
Cointelegraph reached out to Grayscale for comment but did not receive an immediate response.
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