BTC PULSE
No Result
View All Result
Play Now
No Result
View All Result
BTC PULSE
No Result
View All Result
Play Now
Home Bitcoin

Here’s why Grayscale’s Bitcoin Trust GBTC Discount is Fast Dropping

by Darius Ngetich
Jan 10, 2023 - 12:00 am
in Bitcoin
Here's why Grayscale's Bitcoin Trust GBTC Discount is Fast Dropping

Over the last few hours, Grayscales Bitcoin trust GBTC has been fast dropping. This is a result of the different developments surrounding the firm in recent days. According to the trust’s December fact sheet, based on its secondary sales market, GBTC has not attained its investment objective and has instead traded at a premium or discount to such valuation, which at times has been considerable.

$GBTC discount getting bid this morning. pic.twitter.com/ETfKyWJxpI

— Dylan LeClair 🟠 (@DylanLeClair_) January 9, 2023

The trust is intended to follow the current bitcoin priceless outlays. But Grayscale is fully aware that the proxy could have been better.  When bitcoin prices fall, GBTC demand drops dramatically. As a result, the trust has been trading at an astonishingly significant discount on the underlying bitcoins. 

Is DCG the right fit to purchase GBTC shares?

The largest private investment business in cryptocurrency, DCG, can repurchase GBTC shares, although prominent examples have yet to make the news. CEO Michael Sonnenshein stated in his year-end investor letter that GBTC itself does not.

Despite this, the reduction could be better. There is no avoiding it. Both Grayscale and GBTC’s backers suffer as a result. Through the trust’s closing on January 6, Grayscale estimated the value of each GBTC shares to be $15.42. They are valued at $8.65, according to secondary (over-the-counter) markets.

However, McClurg and his group are more qualified to handle it. Executives at Grayscale are the only ones who genuinely understand their trust. It’s simple to make accusations, place blame, and use Twitter slurs.

But Grayscale has yet to rest on its laurels. Change is required, and it is bound to happen based on the event surrounding the firm. What is in doubt are the ways and means by which that transformation will occur, as well as whether it will result in Grayscale’s chosen outcome.

Morgan Stanley now holds bitcoins

With $6.5 trillion in assets under management, Morgan Stanley is one of the largest investment banks in the world and owns bitcoin, which is predicted to regain a bullrun, on behalf of their fund clients. According to a filing, the Morgan Stanley Europe Opportunity Fund purchased GBTC, or the Grayscale Bitcoin Trust, which holds actual spot bitcoin, for $3.6 million.

To maximize capital appreciation by investing primarily in high-quality established and emerging firms headquartered in Europe that the investment team feels are cheap at the time of acquisition, this fund predominantly owns British, Italian, French, Swiss, and Dutch stocks.

Since the total assets of the European Opportunity Fund are said to be $1 billion, the US-based GBTC has been included as a diversifier. Still, this particular one only has roughly $120 million in assets.

Tags: BitcoinGrayscale
Darius Ngetich

Darius Ngetich

Darius Ngetich is a blockchain, crypto, and gaming enthusiast. He is also an animator, VFX Artist, and Game Developer, specializing in computers with vast experience in programs like Blender, Unity, and Unreal Engine. My passions are creating games and informing others about the latest developments in crypto, blockchain, and gaming.

Related Posts

Green Minerals headquarters and Bitcoin symbol representing strategic investment deal

Bitcoin Inflows From 2024-2025 Break 15-Year Record, Hitting $625B

September 15, 2025

Bitcoin on-chain inflows reached $625B in 1.5 years, outpacing 15 years of growth. Institutional demand and Fed policy...

Wall Street financial district with Bitcoin symbol representing institutional adoption

Wall Street Veteran Jordi Visser Predicts Big Bitcoin Allocation Boost by Year-End

September 14, 2025

Jordi Visser forecasts US institutions will increase Bitcoin allocations before year-end, boosting Q4 demand and setting up portfolios...

China Renaissance invests $100M in BNB through MoU with YZi Labs

China Renaissance Commits $100M to BNB in Landmark Treasury Move

August 22, 2025

China Renaissance invests $100M in BNB, signing MoU with YZi Labs to push adoption and regulated listings in...

BlackRock CEO Larry Fink speaking at the World Economic Forum

Bitcoin’s biggest Wall Street backer takes the wheel at World Economic Forum

August 15, 2025

BlackRock CEO Larry Fink joins André Hoffmann as interim co-chair of the WEF board, signaling stronger ties between...

View All
BTC-Pulse LogoTransparent

© 2024 BTC-PULSE. Disclaimer: The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

Info

  • Learn
  • Price Prediction
  • Events
  • Press Releases
  • Sitemap

Company

  • About Us
  • Terms of Service
  • Privacy Policy
  • Contact Us
  • Advertise

News

  • Altcoins
  • Bitcoin
  • Ethereum
  • NFT
  • Regulation
  • WEB 3.0

©2024 BTC-PULSE – All right Reserved.

No Result
View All Result
  • About Us
  • Advertise
  • BTC-PULSE
  • Contact Us
  • Events
  • Privacy Policy
  • Sitemap
  • Terms of Service