Grayscale lost more than USD 1 billion with its leading product, the Grayscale Bitcoin Investment Trust (GBTC), and it continues to trade at a significant discount compared to the volume of assets managed by the institutional investment fund.
According to data updated by Grayscale, on April 21, the assets managed by the fund were USD 36,460 million. However, in the update on the 22nd it reflected USD 35,285 million, that is, a loss of USD 1,175 million as bitcoin continues to face downward pressure, with the asset falling 19% this week, according to data from CoinMarketCap.
The particular situation with GBTC is that is trading at a 19% discount, its lowest point in history , according to YCharts. This means that each GBTC share is bought and sold at a price that is 19% below its issue cost.
Grayscale Bitcoin Trust falls to record level
Until recently, GBTC was one of the only options for institutional investors to get exposed to bitcoin. In fact, it was attracting interest as the share premium peaked at nearly 41% in December of last year. However, apparently became less attractive as more institutional investment vehicles came onto the market, such as Bitcoin exchange-traded funds (ETFs) that have come onto the market, three of them recently launched in Canada.
As CriptoNoticias reported, in March Grayscale stopped new investments in GBTC . It did so a few days after the Bitcoin Trust traded at a discount that reached 15%, well below the value of BTC that each share represents. The decline has only been pronounced since then.
In its attempt to push the premium into positive territory, Digital Currency Group, Grayscale’s parent company, announced that it would purchase up to $ 250 million worth of shares of GBTC on March 10. So far, the expected effect has not occurred .
Recently, the firm announced its intention to convert GBTC into an ETF, Although, the company founded in 2013 has not elaborated on the details of procedures before the Securities and Exchange Commission of the United States to crystallize this initiative or in the term in which it will be finalized.