Grayscale Bitcoin Trust's (GBTC) share price discount has dropped below 27% for the first time in over 14 months. The milestone indicates a positive trend for the popular investment vehicle, sparking optimism among investors and crypto enthusiasts. GBTC, owned by Grayscale Investments, provides indirect exposure to bitcoin for investors without direct ownership of the asset.

In the past year, the difference between the net asset value of GBTC shares and the market price has concerned investors due to the trust's unique structure. The recent narrowing of the discount, however, has boosted investor confidence. Renewed hope for a spot Bitcoin exchange-traded fund (ETF) likely contributed to the narrowing discount, with BlackRock, WisdomTree, and Invesco submitting applications to the U.S. Securities and Exchange Commission (SEC).