GBTC discount narrows to nearly 10% first time since 2021, while Grayscale is in talks with SEC

Grayscale has amended its spot Bitcoin ETF filing, in consultation with the US financial regulator, the Securities and Exchange Commission (SEC). The GBTC discount has narrowed to -9.77%, for the first time in two years.

Also read: XRP price recovery likely in the cards as market participants scoop up Ripple despite whale distribution

Grayscale discount narrows, falls below 10%

Grayscale’s GBTC shares typically trade at a discount since they cannot be redeemed for BTC, instead they can only be sold to other buyers. Despite this limitation, GBTC traded at a premium until 2021.

GBTC discount deepened during the crypto market crises, trading at nearly 49% discount in December 2022. Since then, GBTC price recovered and discount narrowed, it is now trading 9.77% below the value of BTC that the share represents. The GBTC discount narrowed to this level for the first time since August 2021, marking a key milestone for GBTC share holders. 

GBTC Discount or Premium to NAV

Grayscale is in talks with the SEC

Bloomberg ETF analyst, James Seyffart informed his 58,400 followers on the social media platform X that the US financial regulator is in talks with Grayscale regarding its spot Bitcoin ETF application. 

The asset management firm landed a historic win against the regulator in a recent lawsuit. The regulator is re-reviewing Grayscale’s spot Bitcoin ETF filing and the process has resulted in amendments and updates to the firm’s application. Find out more about this here.

It is likely that market optimism on the possible approval of a spot Bitcoin ETF approval is narrowing the GBTC discount, as the share price rises.