- GBTC is trading much cheaper than BTC
- This worsens Grayscale’s position in the dispute with the SEC
- The meeting is scheduled for March 7
Grayscale’s GBTC shares are trading 45% below their NAV price. This means that they are almost half the price of their BTC holdings.
This situation has been going on for several months since the bankruptcy of FTX and the general decline in the crypto market. But there is a nuance – a court session between Grayscale and the SEC will take place on Tuesday. However, the parties will present their reasons for rejecting the conversion of GBTC to Bitcoin-ETF.
Recall that Grayscale filed a lawsuit against the SEC in June 2022. They want to defend their right to open an exchange-traded fund. There is an opinion that this will help the shares to return the price, similar or higher than the rate of bitcoin.
The Grayscale Bitcoin Trust (GBTC) is an investment product that tracks the market price of bitcoin after management fees have been deducted. Such trust shares were the first securities for pure investment in BTC.
Grayscale’s parent company is DCG. The same group includes bankrupt crypto lender Genesis. Therefore, it is obvious that DCG is in a problematic position.
After the bankruptcy of Genesis, GBTC investors began to panic. They offer different options for solving the crisis – from allowing a share buyback to firing CEO Barry Silbert.
GBTC currently owns 3.5% of all BTC in the world. And while the fund’s value is at an all-time low, Grayscale assures that neither the collapse of FTX nor the bankruptcy of Genesis will affect it.
