GBTC price increase inches closer to BTC/USD price

bitcoin fall

The Grayscale Bitcoin Trust (GBTC), is now trading at a relatively small 17% discount compared to the BTC/USD price, according to recent data from CoinGlass.

This points to a massive improvement in the performance of GBTC compared to previous months. While GBTC is currently the largest institutional investment vehicle for Bitcoin ($BTC), the trust has faced challenges recently with regulatory pressure. Things started to look up when BlackRock, the world’s largest asset manager, announced its intention to file an application for the first Bitcoin spot price-based exchange-traded fund (ETF) in the United States. BlackRock’s intention was welcomed by Grayscale executives, who were engaged in a legal battle with United States regulators over converting GBTC into a spot ETF.

It’s important to note that the United States Securities and Exchange Commission (SEC) had not approved any spot ETF applications at that time, and it had recently delayed decisions on several such projects. Despite these challenges, Grayscale managed to win a crucial showdown with the SEC last month.

The discount of GBTC shares to Bitcoin’s price, which was previously referred to as the “GBTC Premium” when it was trading at a surplus, had narrowed down to just 17.17% on September 9th. This represents the smallest discount since December 2021. For some time, this premium had turned negative, meaning that GBTC shares were trading at a discount to the net asset value of the underlying Bitcoin holdings, and at one point, this discount had reached nearly 50%.

What’s noteworthy is that GBTC’s performance has started to diverge from the overall trend of the Bitcoin price. While GBTC has seen improvements and a reduced discount, Bitcoin’s price has been relatively steady, currently trading around $25,500. Bitcoin’s price movements have been consistent with historical trends; September has often been a relatively weak month for Bitcoin, with the cryptocurrency often seeing losses of up to 10%.

Some analysts and traders are optimistic about the next few months, pointing out that October has historically been a bullish month for Bitcoin. 

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