Discount on Grayscale’s GBTC Plunges to New Record Low as Competition From Emerging Rivals Intensifies – Markets and Prices Bitcoin News

The premium on Grayscale Investment’s GBTC, which turned negative for the first time on February 23, is continuing its downward slide. As the latest Glassnode data shows, the GBTC was trading at a record low discount of -11.92% on March 4, 2021. According to the same data, this new low is a significant reversal from the December 21 premium of nearly 40%.

Discount on Grayscale's GBTC Plunges to New Record Low as Competition From Emerging Rivals Intensifies

The Competition

This growth in the discount on GBTC comes as Grayscale Investments gradually shifts focus to altcoins. As reported by, Grayscale added 174,000 litecoins or almost 80% of the newly minted LTC in February of 2021. Similarly, the investment company also added 243,000 ETH to its ethereum holdings during the same period.

However, it is the discount on the GBTC that has sparked debate about what it might mean for holders of the investment product. Some have pointed to the launch of Purpose Bitcoin ETF as the primary reason for widening discount on the GBTC. After its launch on February 18, the ETF had amassed 11,141.2363 bitcoins as of March 2. Meanwhile, also sharing the same sentiment are analysts at the financial services giant JP Morgan. In addition to naming the increasing competition, the analysts also believe “profit booking” to be the other reason why the premium on GBTC has disappeared.

In the meantime, as Josh Frank, the founder and CEO at explains to, this scenario will not hold forever.

“This discount is not going to last forever because investors will take advantage of the discount on bitcoin they can hold in their retirement accounts,” said the founder.

The Premium Has Always Existed

Meanwhile, according to Frank, who previously explained in a Twitter thread why the premium on GBTC existed, institutions were getting “into the GBTC to arb the difference between the borrowing rate and the premium.” And as the CEO notes, this “trade worked for a really long time as retail consistently paid a…

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