Grayscale Bitcoin Trust Hits Record Low Discount
As of February 15th, Grayscale Bitcoin Trust (GBTC) is trading at a discount of 47.35% to the net asset value (NAV) of its underlying assets, which is the lowest it has been all year.
The current price of GBTC shares is $10.85, having increased by 4.43% in the last 24 hours, according to data from ycharts.
Earlier this year, the discount had narrowed to around 38.55% following community-led efforts to redeem the shares. However, it began to widen again due to the struggles of GBTC’s parent company, Digital Currency Group (DCG).
DCG has been experiencing financial problems at one of its subsidiaries, Genesis, which filed for bankruptcy on January 19th. This has led to concerns about the financial health of DCG and its potential impact on Grayscale.
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To raise funds, DCG has been selling some of its assets, including $22 million worth of its shares in Grayscale’s Ethereum (ETH) fund. The company is also trying to sell its news outlet, CoinDesk.
As a result, other Grayscale cryptocurrency trusts, such as Grayscale Ethereum Trust and Grayscale Ethereum Classic Trust, are trading at even higher discounts against NAV – 52.80% and 68.13%, respectively, according to ycharts data.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
