Bitcoin

Grayscale Bitcoin Trust

<p style="text-align: justify">According to the digital asset data provider CCData, Grayscale <a href="https://en.coin-turk.com/bitcoin-and-other-major-cryptocurrencies-start-the-week-with-a-decline/" data-wpel-link="internal">Bitcoin</a> Trust (GBTC), the world’s largest Bitcoin (<a href="https://en.coin-turk.com/crypto-analyst-foresees-decline-in-bitcoin-growth-in-ripples-xrp/" data-wpel-link="internal">BTC</a>) fund, has lowered the discount on its net asset value (NAV) to nearly the lowest level in two years.</p> 
<h2 id="critical-metric-in-bitcoin">Critical Metric in Bitcoin</h2> 
<p style="text-align: justify">Recent data shows that the discount on the $15 billion market cap product’s NAV reached its lowest level since December 2021, with a decline of 14.8% in October. This could be a significant development from the beginning of the year. A decline in a fund’s NAV essentially means that the fund’s shares are trading at a lower price than the actual value of the tokens held by the fund.</p> 
<p style="text-align: justify">In general, a narrowing discount can indicate that investors have a more optimistic view of GBTC. As mentioned, the decline in NAV reached around 50% at the end of last year and spent most of the first half of 2023 in a range of around 40%. However, there has been a noticeable change in sentiment in the last quarter.</p> 
<p style="text-align: justify">A series of positive developments surrounding Grayscale Investments’ conversion proposal to a spot Bitcoin ETF could explain this turnaround. Unlike leveraged products that occasionally deviate from the value of underlying assets, a spot ETF keeps the value of the fund aligned with the token value.</p> 
<h2 id="sec-move-on-btc">SEC Move on BTC!</h2> 
<p style="text-align: justify">The US Securities and Exchange Commission (<a href="https://en.coin-turk.com/latest-development-in-the-genesis-case/" data-wpel-link="internal">SEC</a>) rejected the application last year, claiming that it did not comply with investor protection standards. Following this, Grayscale filed an appeal requesting a review of the regulator’s decision.</p> 
<p style="text-align: justify">A court ruling in early August was in line with Grayscale’s claims and instructed the SEC to review its decision. This decision increased hopes for a future conversion while also creating a divide between GBTC and NAV. As a result, Grayscale Bitcoin Trust (GBTC) has lowered its discount to the lowest level in resistance to the decline in underlying tokens. This resistance, associated with hopes for the conversion to a spot Bitcoin ETF, indicates a positive sentiment among investors. Grayscale’s request for a review of the regulator’s decision and the court ruling could be decisive for the future of GBTC.</p> Continue Reading: <a href="https://en.coin-turk.com/grayscale-bitcoin-trust-gbtc-lowers-the-critical-metric-to-the-lowest-levels-of-the-year/" data-wpel-link="internal">https://en.coin-turk.com/grayscale-bitcoin-trust-gbtc-lowers-the-critical-metric-to-the-lowest-levels-of-the-year/</a>

Grayscale Bitcoin Trust (GBTC) Lowers the Critical Metric to the Lowest Levels of the Year

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