Bitcoin's (BTC) decline to USD 24,000 has cost its largest institutional investment vehicle more than the average hodler.
According to data from on-chain monitoring resource Coinglass on May 13, the Grayscale Bitcoin Trust (GBTC) now trades at a discount of nearly 31%.
Grayscale CEO: investors are "waiting for things to calm down."
Amid continued market volatility this week, GBTC has seen its nascent rally come to naught, for the time being.
GBTC's so-called premium, long in negative territory and thus a discount in practice, has now reached its lowest level.
On May 13, the discount was 30.6%, meaning that GBTC shares were trading almost a third below the spot price of Bitcoin (called net asset value, or NAV).
The figures represent a clear turnaround for the premium, which had been as high as a 21% discount in mid-April.
Overall, however, GBTC has long been trading at a discount amid Grayscale's attempts to turn it into an exchange-traded fund (ETF).
"It took clarity and conviction to create GBTC, and now Grayscale is demonstrating courage and commitment in their campaign to convert GBTC into a Spot Bitcoin ETF. They deserve your support," MicroStrategy CEO Michael Saylor argued this week, inviting his Twitter followers to demand that U.S. regulators greenlight the plans.
Such a move would be unprecedented in the United States, where the Securities and Exchange Commission (SEC) has lagged behind authorities in other countries in approving a spot Bitcoin-based ETF.
Despite the turbulence, Grayscale CEO Michael Sonnenshein remains as bullish as ever about GBTC and institutional demand for Bitcoin exposure.
"I think some investors are waiting for things to calm down," he told CNBC in a May 12 interview.
"I think when things settle down and cryptocurrencies start to find their footing, you'll see some of those more institutional buyers start to step in and some have already indicated that they are, in fact, starting to take purchases at these levels."
Purpose Bitcoin ETF records record daily purchases.
Across the border in Canada, the world's first spot Bitcoin ETF has benefited from the week's trading conditions.
The Purpose Bitcoin ETF added 6,903 BTC in a single day on May 13, marking its largest single-day purchase in its history.
Purpose now has 41,620 BTC under management, surpassing its previous high of 36,322 BTC set in March of this year.
Elon is at it again, and this time it’s not great news for the Bitcoin market.
Elon Musk took yet another jab at Bitcoin when he tweeted on Friday.
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These two announcements increased the value of Bitcoin excellently and contributed heavily to the all-time high of Bitcoin in April.
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