Grayscale’s Bitcoin Trust Shares Hit Record Discount of 36.7%

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 June, the SEC denied the company’s application to convert the Bitcoin Trust into an exchange-traded fund. Three Arrows Capital said arbitrage trading the premium was one of the factors that led to the collapse of the fund. . . .