The crown jewel of the Connecticut-based crypto money management, GBTC (Grayscale Bitcoin Trust), has dropped to a new low in terms of net asset value (NAV).
The GBTC discount touched another all-time low of $30.79, according to financial software provider YCharts.
GBTC owners are large institutions
The value of GBTC assets under management has dropped as low as $18.3 billion from 49.87%, indicating weakening institutional support. A significant chunk of GBTC owners are large institutions.
While the notion of purchasing shares at a significant discount to Bitcoin may be appealing. Investors must retain their shares for at least six months before trading them on the secondary market.
GBTC is desperately trying to convert the struggling fund into an NYSE-traded ETF. The corporation stated in a private meeting with the SEC earlier this month that such a move would release $8 billion in value for investors. After the anticipated conversion, the ongoing discount would disappear.
The SEC is expected to issue its decision by July 6. The adoption of the first spot-based Bitcoin ETF might mark a turning point for the cryptocurrency. The latest drop makes it even less feasible.
GBTC after three more SEC-registered trusts
GBTC has submitted papers to get three more of its trusts SEC-registered (Grayscale Zcash Trust, Grayscale Horizen Trust and Grayscale Stellar Lumens Trust).
The business also revealed its desire to join the busy European market in late April.
