Why is GBTC trading at a discount?

GBTC has traded at a discount to its bitcoin holdings since February 2021. The situation dramatically worsened last year in the aftermath of FTX blowing up. In November, the lending arm of Genesis halted customer withdrawals, and the GBTC discount increased to 43%.

Why has GBTC's discount only moved from 25% to 15-20%?

The reason why GBTC's discount has only moved from 25% to 15-20% is because GBTC hasn't or isn't converting to an ETF yet. Today's move is simply a reflection of the fact that it's become more likely, maybe even inevitable.

What does GBTC stand for?

This chart plots the average weekly premium in the total value of Bitcoin Trust shares (GBTC) to the Net Asset Value (NAV) of the Trust holdings of Bitcoin. See how the weekly premium of the Greyscale Bitcoin Trust has developed.

Should you buy GBTC (GBTC) if a bitcoin ETF conversion is approved?

If a bitcoin ETF conversion is eventually approved, GBTC's discount could approach 0%, creating an opportunity for investors. I've been holding shares of the Grayscale Bitcoin Trust (GBTC) for more than two years now. Not a big position, but enough to have at least a little bitcoin exposure in my portfolio.