Bitcoin (BTC<\/a>) investment vehicle, the Grayscale Bitcoin Trust (GBTC), is trading close to 50% below the BTC price on spot markets.<\/p>\n Data from on-chain analytics platform Coinglass<\/a> confirms that on Dec. 8, GBTC shares hit a new record low of -47.2% against BTC\/USD.<\/p>\n In the latest bout of nerves to hit the Bitcoin industry since the fall of FTX, GBTC is nearing half-price versus the price of Bitcoin.<\/p>\n The largest institutional Bitcoin investment vehicle, with assets worth around $10 billion<\/a>, GBTC has faced numerous challenges in recent years. <\/p>\n The price of its shares previously traded higher than BTC\/USD, resulting in what was called the \u201cGBTC premium.\u201d Since 2021, however, that premium has turned negative, but the resulting \u201cdiscount\u201d has done little to lure additional institutional interest.<\/p>\n As Cointelegraph reported, beyond a few key exceptions<\/a> such as ARK Invest, GBTC is languishing as operator Grayscale, part of Digital Currency Group (DCG), attempts to convert it to an exchange-traded fund (ETF) \u2014 suing<\/a> United States regulators standing in its way.<\/p>\n Amid the legal battle, FTX has sparked liquidity problems elsewhere in the DCG empire, and this has led to doubts over Grayscale and GBTC. Grayscale declining<\/a> to show proof of its BTC reserves last month, despite custodian Coinbase confirming its assets were secure, added to the tensions.<\/p>\n \u201cGrayscale is in some real trouble if they have to reveal where all the Bitcoins are that back the GBTC,\u201d popular commented Bitfinex\u2019ed wrote<\/a> in part of a Twitter discussion on the topic this week.<\/p>\n This week, things became even worse, as Grayscale faced a lawsuit<\/a> from investor Fir Tree over what it calls \u201cshareholder-unfriendly actions.\u201d<\/p>\n Meanwhile, overall interest in crypto ETFs has plummeted this year, separate data suggests<\/a>.<\/p>\n With that, the GBTC premium, having barely recovered from previous record lows, sank even further versus Bitcoin, known as its relationship to net asset value (NAV).<\/p>\n Related:\u00a0Why is Bitcoin price down today?<\/a><\/em><\/strong><\/p>\n \u201c$GBTC discount to bitcoin NAV is on the express elevator to hell. => sentiment = bearish,\u201d Timothy Peterson, investment manager at Cane Island Alternative Advisors, summarized<\/a>.<\/p>\n Others lamented the slow pace of change in the U.S. as fueling the fire.<\/p>\n \u201cQuite a lot of the pain this year would have been avoided if GBTC had been made into an ETF SEC keeping everyone safe!\u201d investor and entrepreneur Alistair Milne reacted<\/a>, echoing popular sentiment from recent weeks.<\/p>\n Willy Woo, creator of statistics resource Woobull, meanwhile argued that the impact of fading GBTC exposure was not necessarily a straight negative for BTC price strength.<\/p>\n \u201cThe GBTC \/ DCG \/ Genesis fears is a bearish cloud hanging over the market. But counterintuitively part of the impact has been bullish for BTC price,\u201d he tweeted<\/a> on Dec. 5. <\/p>\n \u201c37.5% of people who sold GBTC bought spot BTC to take custody. Selling GBTC does not impact BTC price, buying spot does.\u201d<\/p><\/blockquote>\n An additional Twitter survey quizzed the platform’s users who notionally own GBTC over their motives to sell.<\/p>\n The views, thoughts and opinions expressed here are the authors\u2019 alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.\n<\/p>\n<\/div>\nGBTC troubles pile up post-FTX<\/h2>\n
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Woo: Problems “partly bullish” for Bitcoin<\/h2>\n
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