Grayscale Bitcoin Trust (GBTC) has fallen to its deepest discount on record, with the gap to bitcoin spot prices widening to 35.18%. The latest move marks 577 consecutive days of GBTC trading below the value of its underlying bitcoin exposure.
GBTC remains one of the oldest and most widely followed bitcoin investment vehicles in the market, but its structure has come under increasing pressure as newer exchange-traded products have emerged. According to the report, the trust’s pre-market price stood at about $11.20. SEC filings show that GBTC holds 643,572 BTC, equivalent to roughly 3.065% of bitcoin’s 21 million maximum supply. Even with that large reserve, the product’s market price continues to trade far below its net asset value.
ETF Conversion Still Seen as the Main Catalyst
Market participants have long argued that GBTC’s persistent discount is tied to its closed-end structure and the lack of a direct redemption mechanism. Grayscale has sought to convert the trust into an exchange-traded fund, but its latest application was rejected by the U.S. Securities and Exchange Commission in June. In response, Grayscale sued the SEC over the decision.
Many investors believe a successful ETF conversion could sharply narrow, or even eliminate, the discount to spot bitcoin prices. For now, however, that outcome remains uncertain. The SEC has yet to approve a spot bitcoin ETF in the United States and has repeatedly cited market manipulation concerns as a key reason for rejection.
Investors Remain Cautious Despite the Deep Discount
Some traders see the current discount as a potential opportunity, especially if investors are willing to hold until a redemption pathway or structural change unlocks value. Still, the broader market has shown little urgency to step in. That hesitation suggests investors remain wary not only of GBTC’s structure, but also of the broader outlook for bitcoin prices.
The report noted that institutional buyers had shown interest when GBTC’s discount approached 30% last March. Grayscale and its parent company, Digital Currency Group, have also tried to address the issue through share buybacks. Even so, the spread has continued to widen, underscoring how regulatory uncertainty and weak sentiment have weighed on the product.
In that context, GBTC’s record discount has become more than a fund-specific problem. It now serves as a barometer for institutional appetite, regulatory frustration, and market expectations around spot bitcoin products in the U.S.