As the discount shrinks between the price of Grayscale’s Bitcoin Trust (GBTC) and its Bitcoin holdings, traders who scooped up shares during what was perhaps the product’s darkest day are notching lucrative gains.

Shares of GBTC traded hands at $19.71 when markets opened Thursday, 137% higher than $8.29 on December 13 of last year. At the time, GBTC traded at a near 50% discount relative to its Bitcoin holdings, the most significant price discrepancy the trust has ever seen, according to Ycharts.

GBTC’s hefty gains since December 13 have outperformed Bitcoin itself. Since then, Bitcoin’s price has increased 48% to around $26,300 from $17,800.

Grayscale’s Bitcoin Trust, which has $17 billion in assets under management, allows investors to gain Bitcoin exposure in the form of security. Each share represents ownership of Bitcoin, currently 0.00090084 of a whole coin, which was worth $24.49 when the market’s opening bell rang.

However, due to the product’s structure, shares have traded at a discount since February 2021. GBTC’s 692 million shares outstanding were collectively valued at $13.6 billion and $19.71 a piece, less than the trust’s net asset va

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Author: André Beganski

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