Grayscale Bitcoin Trust Trades at Biggest Bitcoin Discount Since May

Digital Currency Group’s flagship Grayscale Bitcoin Trust is trading at about 16.52% below the Bitcoin spot price, marking the largest discount since Bitcoin’s May price decline.

The Grayscale Bitcoin Trust currently offers exposure to 0.000938223 BTC per share, an amount that trades for around $42.32 at market close on August 18. Through shares of GBTC, however, that same amount of Bitcoin trades at $35.31, a 16.52% negative spread between GBTC’s premium and underlying net asset value at time of writing.

Since May, Bitcoin has recovered up to $44,300 at the time of writing, while Grayscale has been slower to catch up. Due to the six-month lock-up of initial GBTC investments, GBTC holders are unable for some time to redeem their shares in reaction to the bitcoin market price. Thus, the product tends to trade at either a premium or a discount compared to the Bitcoin held within.