GBTC, discount rate shrinks ─ to the level for the first time in 8 weeks | coindesk JAPAN | Coindesk Japan

Grayscale Bitcoin Trust (GBTC) discount rates are back to eight-week levels.

GBTC, which has over $10 billion in assets under management, is up 17.5% year-to-date, while Bitcoin (BTC) is up about 5% to around $17,300. As a result, GBTC’s discount rate to Bitcoin has shrunk from 45% at the end of 2022 to about 38% for the first time in eight weeks. The discount rate hit a record high of 50% in December.

In early 2022, the discount was in the 20% range. In the years prior to early 2021, it often traded at a hefty premium.

“The shrinking GBTC discount rate may be due to traders betting on either the complete elimination of GBTC or the forced full or partial refund of Grayscale,” Fundstrat said. said Sean Farrell, head of digital asset strategy at Fundstrat. “However, with very low volumes and low liquidity, it is still difficult to draw conclusions.”

Grayscale applied to convert GBTC to an exchange-traded fund (ETF) in 2022, but the SEC (Securities and Exchange Commission) turned it down. The company sued the SEC.

Meanwhile, GBTC investors have increased pressure on Grayscale’s parent company, Digital Currency Group (DCG), to deal with the steep discount rate and liquidate GBTC, or at least allow Grayscale to pay it back. There were voices calling for it. Hedge fund Fir Tree is suing Grayscale at the end of 2022, seeking to reduce fees and resume refunds as a means of reducing the discount rate.

Similar to GBTC’s move since the beginning of the year, shares of cryptocurrency trading giant Coinbase, bitcoin mining firms Marathon Digital and Riot Platforms have all surged. . All three stocks were down more than 75% in 2022.

｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
| Image: Nikhilesh De/CoinDesk
｜Original: Grayscale Bitcoin Trust Discount Narrows to 8-Week Low as DCG Faces Pressure