Bitcoin (BTC) is up 87% this year, even before today’s rally to $31,000, but the asset’s rising tide has lifted public stock for crypto companies to even greater heights.

For one, shares in the Grayscale Bitcoin Trust (GBTC)—the world’s largest Bitcoin fund—have risen 196% since the start of the year, proving a far more profitable choice for buyers over the real thing.

Grayscale plans to give investors exposure to its underlying Bitcoin stash by converting its fund into a spot Bitcoin ETF. If approved by regulators, this will make each share in its fund directly redeemable for a fixed slice of BTC.

Since that hasn’t happened yet—and because it isn’t guaranteed to ever happen—GBTC shares have long traded at a discount to the BTC held by Grayscale.

However, a major legal victory over the U.S. government this year has made conversion a far more likely possibility in the eyes of the market, and that discount has shrunk dramatically in response. Just today, a D.C. court ordered the SEC to give Grayscale’s Bitcoin spot ETF a fresh look.

As such, gains from the shrinking share discount have worked in tandem with BTC’s ris

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Author: Andrew Throuvalas

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