Grayscale Bitcoin Fund’s Discount Narrows as Court Decision Nears
(Bloomberg) — Crypto investors appear to be the most optimistic in over a year about the odds of the world’s biggest Bitcoin investment product being allowed to be turned into an exchange-traded fund.
The $18.8 billion Grayscale Bitcoin Trust’s discount to its net-asset value has narrowed to around 25% as of Thursday, as a highly-anticipated court decision on Grayscale Investment’s bid to convert it into an ETF nears. The difference is the least since May 2022.
“What we’ve been guided by our attorneys is that we should expect a decision by the fall at the latest,” Michael Sonnenshein, chief executive officer of Grayscale, said during a Thursday interview on Bloomberg TV. Though it could come out of the court “any day,” he added.
The trust has effectively operated as a closed-end fund that didn’t redeem shares, which left the trust trading at discounts of more than 40% to its underlying Bitcoin. The structure of an ETF allows shares to be created and redeemed to keep pace with shifting demand. To see entire article click above.