{"id":1510,"date":"2022-11-10T11:19:28","date_gmt":"2022-11-10T11:19:28","guid":{"rendered":"https:\/\/cryptoteambuild.com\/blog\/grayscales-bitcoin-trust-shares-hit-record-discount-of-36-7\/"},"modified":"2022-11-10T11:19:28","modified_gmt":"2022-11-10T11:19:28","slug":"grayscales-bitcoin-trust-shares-hit-record-discount-of-36-7","status":"publish","type":"post","link":"https:\/\/cryptoteambuild.com\/blog\/grayscales-bitcoin-trust-shares-hit-record-discount-of-36-7\/","title":{"rendered":"Grayscale’s Bitcoin Trust Shares Hit Record Discount of 36.7%"},"content":{"rendered":"
\n
\n
\n
\n
\n
\n
\n
\n
\n
<\/p>\n

\"<\/p>\n

<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

\n
\n
\n

As bitcoin (BTC) continues to hit record low prices, the shares in Grayscale Investment’s bitcoin trust (GBTC) have hit a record low.<\/p>\n<\/div>\n

\n

The discount in GBTC shares relative to the value of the underlying asset held in the fund widened to a record 36.7% on November 7<\/a>. Bitcoin has dropped by nearly 20% during the past two weeks as the bear market shows its ugly claws.<\/p>\n<\/div>\n

\n

Analysts say that a continued widening of the GBTC discount shows a weakening institutional demand for bitcoin, combined with the ready availability of bitcoin ETFs for retail.<\/p>\n<\/div>\n

\n

In a note to CoinDesk, Henry Liu, CEO of BTSE, a trading infrastructure provider, said that the GBTC discount hitting such extreme levels is because of the liquidity crunch post FTX’s collapse.<\/p>\n<\/div>\n

\n

“This has resulted in thinning liquidity, wider spreads, and increasing volatility across the industry, particularly for BTC,” Liu said.<\/p>\n<\/div>\n

\n

GBTC is a close-ended fund, meaning BTC deposits are perpetually locked, but GBTC shares can be sold on the market after a six-month lockup.<\/p>\n<\/div>\n

\n

In June, Grayscale launched a suit<\/a> against the Securities and Exchange Commission (SEC) which denied the company’s application to convert the Grayscale Bitcoin Trust into an exchange-traded fund.<\/p>\n<\/div>\n

\n

Three Arrows Capital was a large holder of GBTC, and told Bloomberg in July<\/a> that arbitrage trading the premium was one of the factors that led to the collapse of the fund.<\/p>\n<\/div>\n

\n

Grayscale and CoinDesk are part of the same parent company, Digital Currency Group.<\/p>\n<\/div>\n<\/div>\n

\n
\n

Sign up for Crypto for Advisors, our weekly newsletter defining crypto, digital assets and the future of finance.<\/span><\/p>\n

By signing up, you will receive emails about CoinDesk product updates, events and marketing and you agree to our terms of services<\/a> and privacy policy<\/a>.<\/span><\/p>\n<\/div>\n

\n

DISCLOSURE<\/p>\n

\n
\n

Please note that our<\/p>\n

privacy policy<\/a>,<\/p>\n

terms of use<\/a>,<\/p>\n

cookies<\/a>, <\/p>\n

and<\/p>\n

do not sell my personal information<\/a><\/p>\n

has been updated<\/p>\n

.<\/p>\n

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a<\/p>\n

strict set of editorial policies<\/a>. <\/p>\n

CoinDesk is an independent operating subsidiary of<\/p>\n

Digital Currency Group<\/a>, <\/p>\n

which invests in<\/p>\n

cryptocurrencies<\/a><\/p>\n

and blockchain<\/p>\n

startups<\/a>.<\/p>\n

As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of<\/p>\n

stock appreciation rights<\/a>,<\/p>\n

which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG<\/p>\n

.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

\n
\n
\n
\n
<\/p>\n

\"<\/p>\n

<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

\n
\n
\n
\n
\n
<\/p>\n

\"<\/p>\n

<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<\/div>\n

Read More<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

As bitcoin (BTC) continues to hit record low prices, the shares in Grayscale Investment’s bitcoin trust (GBTC) have hit a record low. The discount in GBTC shares relative to the value of the underlying asset held in the fund widened to a record 36.7% on November 7. Bitcoin has dropped by nearly 20% during the past two weeks as the bear market shows its ugly claws. Analysts say that a continued widening of the GBTC discount shows a weakening institutional demand for bitcoin, combined with the ready availability of bitcoin ETFs for retail. In a note to CoinDesk, Henry Liu, […]<\/p>\n","protected":false},"author":1,"featured_media":1511,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[6],"tags":[18,302],"_links":{"self":[{"href":"https:\/\/cryptoteambuild.com\/blog\/wp-json\/wp\/v2\/posts\/1510"}],"collection":[{"href":"https:\/\/cryptoteambuild.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoteambuild.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoteambuild.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoteambuild.com\/blog\/wp-json\/wp\/v2\/comments?post=1510"}],"version-history":[{"count":0,"href":"https:\/\/cryptoteambuild.com\/blog\/wp-json\/wp\/v2\/posts\/1510\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoteambuild.com\/blog\/wp-json\/wp\/v2\/media\/1511"}],"wp:attachment":[{"href":"https:\/\/cryptoteambuild.com\/blog\/wp-json\/wp\/v2\/media?parent=1510"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoteambuild.com\/blog\/wp-json\/wp\/v2\/categories?post=1510"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoteambuild.com\/blog\/wp-json\/wp\/v2\/tags?post=1510"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}