According to Blockworks, the discounts at which investors pay for shares of Grayscale’s Bitcoin and Ethereum trusts have been gradually decreasing, reflecting optimism around spot crypto ETF approval. Shares of the Grayscale Bitcoin Trust (GBTC) were trading about 11.3% below its net asset value on Thursday, nearly matching the 11% discount seen on October 20. The GBTC discount was as high as about 48% in December 2022. Recently, industry sentiment has shifted, with many observers growing more confident that the US Securities and Exchange Commission (SEC) will eventually greenlight an exchange-traded fund (ETF) that directly holds Bitcoin.
Grayscale is working on converting GBTC to an ETF, a move the firm has said would essentially eliminate the current discount on its shares. Asset management giant BlackRock filed for a spot Bitcoin ETF in mid-June, sending GBTC’s discount from about 42% to as low as about 25% in the span of a month. The discount substantially shrunk again to roughly 18% in late-August after judges ruled the SEC denying GBTC’s conversion to an ETF was unlawful on the grounds it gave. The SEC last month opted not to appeal Grayscale’s court victory.
While GBTC’s discount has fallen, so too has that of the Grayscale Ethereum Trust (ETHE). ETHE’s discount hit about 16.4% on Thursday, the lowest since March 2022. This is substantially down from about 56% in June and as high as roughly 34% as recently as September. Grayscale moved on October 2 to convert its Ethereum Trust to a spot Ether fund. More recently, BlackRock followed up its Bitcoin ETF filing with an Ether-focused proposal, following the lead of other fund issuers. Ether’s (ETH) price was about $2,080 at 3:15 pm ET Friday, up 15% from seven days ago.
