The Grayscale Bitcoin Trust (GBTC) product is trading at a nearly 12% discount — its highest fall in history, according to data compiled by The Block.
The current premium of GBTC stands at minus 11.59%. The sharp fall in the premium suggests that some large investors might be cashing out their gains or just arbitraging premiums away. Competing products, i.e., new bitcoin exchange-traded funds (ETFs) in Canada, could also be a contributing factor.
GBTC has historically traded at a high premium, meaning the market price of its shares in the over-the-counter secondary market has been higher than the net asset value (NAV) of its shares.
But currently, the market price of GBTC stands down at $41, while NAV is at around $46. Since mid-December, the GBTC premium has steadily fallen from around 35%.
GBTC, managed by Grayscale, is the largest bitcoin investment product in the world. It manages more than $32 billion worth of assets. Grayscale has a total AUM of $38.5 billion across its products.