Buy BTC at a huge discount for $12,500 here

• Last week, GBTC’s discount to NAV hit a new low of 36.2 percent, meaning the trust is trading at an implied BTC price of just $12,500.
• Institutional investors still do not find BTC attractive despite a steep discount due to current macro headwinds.

The world’s largest Bitcoin trust aka Grayscale Bitcoin Trust (GBTC) is again in the news for trading at a significant discount of 35 percent from the BTC spot price. The Grayscale Bitcoin Trust provides institutional investors with exposure to Bitcoin in a regulated environment.

According to data from Arcan analytics, gaining exposure to BTC via Grayscale is far cheaper compared to the spot price. In its latest report, Arcane Research wrote:

The GBTC discount hit a new record low of 36% last week, an implied bitcoin price of $12,500. The current discount implies that GBTC will remain closed until January 2045.

Last week, GBTC’s discount to NAV reached a new low of 36.2 percent. That means the trust is trading at an implied BTC price of just $12,500. This could be a good opportunity for investors if BTC resumes its trend again.

However, the current high discount of GBTC may also be a worrying factor! This goes on to paint a clear picture that institutional investors do not think it is a good time to invest in Bitcoin. Historically since 2015, Grayscale Bitcoin Trust (GBTC) has traded at an average premium of 20 percent over spot BTC.

As of now, Grayscale Bitcoin Trust (GBTC) manages 635,240 bitcoin worth $12.8 billion according to current spot BTC prices. It also has a total of 692,370,100 outstanding shares each backed by 0.00091723 bitcoin. Grayscale Securities, a new subsidiary of Grayscale Investments, currently manages GBTC.

Why are investors avoiding GBTC?

One of the main reasons why investors avoid Grayscale Bitcoin Trust (GBTC) is that it comes with a minimum investment of $50,000. Also, it has a lock-in period along with a notable management fee.

Institutional investors also do not seem curious enough to enter BTC at this time regarding the global macro headwinds. However, if the Fed decides to pivot from monetary tightening at any point in the next year, we could see institutional money flowing back into Bitcoin.

On the other hand, institutional investors have preferred exchange-traded products to seek exposure to Bitcoin. Grayscale has pulled out all the stops to convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF. However, the SEC has rejected the company’s application.

Grayscale Investments now plans to sue the SEC over allegations of “arbitrary and capricious” and “unfair discrimination.” On the other hand, BTC price continues to stay calm above $20,000 levels despite strong volatility on Wall Street. The Bloomberg report notes:

The ratio of a measure of expected volatility in Bitcoin to a similar measure of government bonds has fallen to around a one-year low. The pattern between the T3 Bitcoin Volatility and ICE BofA MOVE indices reflects range-bound trading in the largest token since a June nadir despite wide swings in bonds that serve as a gauge of global borrowing costs.