Sep 11, 2023

Crypto ‘Shiba Inu’ and GBTC ‘Discount’ at 3-Month Low Despite BTC Price Discount Hits Smallest Since 2021 Despite BTC Price at 3-Month Lows.
GBTC ‘discount’ hits smallest since 2021 despite BTC price at 3-month lows

Grayscale Bitcoin Trust (GBTC), the investment vehicle of Grayscale, is currently trading at a 17% discount to BTC/USD parity, according to CoinGlass monitoring data as of Sept. 9.

The latest figures demonstrate that GBTC shares are trading at 17.17% below the price of Bitcoin.

GBTC retraces nearly two years of losses

The news that BlackRock, the world’s largest asset manager, had plans to file an application for the United States’ first Bitcoin spot price-based exchange-traded fund (ETF) was a welcome boost for Grayscale executives, who were already in the middle of a legal battle with United States regulators over turning GBTC itself into a spot ETF.

Despite the fact that the U.S. Securities and Exchange Commission has yet to approve a single spot ETF application, delaying a decision on multiple projects, Grayscale still managed to win a key face-off with the SEC last month, helping to drive up GBTC shares.

On September 9, the GBTC premium — once a surplus referred to as the “GBTC Premium” — was just 17.17%, its best level since December 2021. Since then, the premium has been negative, known as a discount to net asset value, reaching as low as nearly 50%.

The, lunc crypto, kraken crypto, crypto com today, crypto ”shiba inu, helium crypto, icp crypto, kava crypto, quant crypto and compound crypto communities have all been watching GBTC’s progress closely.

No joy for Bitcoin bulls

GBTC has thus begun to diverge from BTC price strength, with the latter still sloping downhill as it retests levels rarely seen over the past six months.

At the time of writing, BTC price traded at under $25,500, data from Cointelegraph Markets Pro and TradingView showed, with the Wall Street open adding fuel to an already limp crypto market.

As Cointelegraph reported, September tends to be a weak month for BTC/USD, which often loses up to 10%.

“September is historically a pretty bad month for #Bitcoin, that’s just the facts. October is historically very bullish,” popular trader and analyst CryptoCon told X followers in part of commentary on Sept. 11.

CryptoCon added a chart flagging late November as a key time to watch for signs of life from Bitcoin during prehalving years, echoing an existing theory that gives Nov. 28 as the “bull run launch” date for Bitcoin price once every four years.

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