Why is GBTC trading at a discount?

GBTC is structured to trade at a premium or discount relative to the price of Bitcoin in the market. However, GBTC has been trading at a considerable discount rate because of the prolonged crypto winter this year. The first time GBTC traded at a discount was in February last year.

What is the GBTC premium?

With the GBTC premium the idea is they took BTC people loaned them, wrapped it into GBTC, received shares in GBTC they had to wait 6 months to sell, they'd sell, rebuy the BTC to return to clients if need be, and got to keep the premium (since GBTC was selling at a higher price.)

What is GBTC's 35.18% discount?

GBTC’s 35.18% discount is the fund’s all-time low against BTC spot price values since the fund started. Many people believe GBTC’s discount derives from the fact that there are several exchange-traded funds now, and Grayscale’s efforts to transform GBTC into an ETF (exchange-traded fund) have failed so far.

How much money does GBTC generate a year?

Hence, at the current $10.5 billion NAV, GBTC generates in excess of $200 million per year in management fees. It’s hard to liquidate the fund and let go of such income stream. Anyway, it’s obvious that liquidations tied to the FTX/Alameda collapse were the latest catalyst creating a higher GBTC discount still.