Grayscale BTC Trust is trading at a record discount of 36.7%, but is it justified?

Grayscale's BTC trust is trading at a 36.7% discount to its actual BTC holdings, and it's possible that more than just the market-wide downtrend the reason for the spread.

U.S. investors have been waiting for Bitcoin exchange-traded fund (ETF) approval since May 2014, when the Winklevoss Bitcoin Trust filed a variation request with the Securities and Exchange (SEC).

Over the years, the SEC has rejected every applicant, and the latest rejection was issued to WisdomTree's request for a spot Bitcoin ETF on October 11. The SEC concluded that the offering lacked the ability "to obtain the information necessary to detect, investigate, and deter fraud and market manipulation, as well as violations of foreign exchange rules and applicable federal laws and regulations. in matters of securities."

Bitcoin investment trust vehicles have been around since 2013, but they are restricted to accredited investors. Launching a spot BTC ETF would open the market to retail investors and a wider range of mutual funds in the industry.

At the moment, US regulators are reluctant to release what many believe is a fairer and more transparent product for Bitcoin. A conflicting reality is that while BTC spot ETFs continue to be rejected, the same product has long been available for bonds, global currencies, gold, Chinese stocks, real estate, oil and gas. money.

The Grayscale Bitcoin Trust Fund (GBTC), a US$12.3 billion investment fund, is currently trading at a record 36.7% discount to its Bitcoin holdings, but it is not may not be a buy-type discount. The gap started after the Toronto Stock Exchange launched the Purpose Bitcoin ETF