Grayscale Bitcoin Trust Now Ends Double-Digit Discounts

Key Points:

• Grayscale Bitcoin Trust completes its conversion to an ETF, closing at a slight premium and eliminating historical discounts.
• GBTC’s ETF status marks a milestone, suggesting a changing tide in crypto acceptance.

The Grayscale Bitcoin Trust (GBTC) has completed its transformation into an exchange-traded fund (ETF), marking a significant milestone for the $21 billion fund.

Read more: Bitcoin Spot ETF and Futures ETF: Differences To Make The Right Investment Choice

Grayscale Bitcoin Trust Converts to ETF, Eliminating Discounts

The conversion resulted in a closing premium of 0.02% on its net asset value, eliminating the discounts that were previously associated with the trust.

A notable development is the drop of GBTC’s discount to net asset value (NAV) to 0% on January 26, marking the first time it has reached this level since February 2021. This historic vulnerability to extreme premiums and subsequent double-digit discounts had been a common theme, creating arbitrage opportunities in the crypto space.

The shift to an ETF structure now involves authorized participants working with the sponsor to create and redeem shares, aligning the fund’s price with its net asset value. The transformation has been viewed as a landmark moment by Bitcoin enthusiasts, signaling a potential shift in the broader acceptance of cryptocurrencies.

GBTC’s Milestone and Market Dynamics Unveiled

Since becoming an ETF, Grayscale Bitcoin Trust has experienced net outflows exceeding $5.8 billion, contrasting with newly launched peers that attracted inflows. On the 15th day, the broader landscape of Bitcoin ETFs showed a moderate pace, with total net inflows reaching $38.5 million, as reported by BitMEXResearch.

Noteworthy figures include Grayscale Bitcoin Trust recording its lowest outflows at $182 million, BlackRock’s IBIT ETF maintaining stability with $164 million in net inflows, and Fidelity‘s FBTC experiencing its most minimal influx at $36 million.

In the larger context, BlackRock’s IBIT secured $3 billion in net inflows, while Fidelity’s FBTC reached $2.4 billion. Despite GBTC’s net outflows of $5.8 billion, the combined net inflow across these platforms totaled $1.379 billion.