GBTC On Fire (Sale)Oct 19, 2021
GBTC is currently trading near its steepest discount of the year on the back of the ProShares Bitcoin Futures ETF launch today.
Due to the nature of GBTC, the shares are locked up for 6 months and GBTC holders subject to such lock ups are unable to trade in reaction to market movements. There is also no redemption function in the trust itself, which makes its tracking less efficient.
Today, Grayscale filed to convert GBTC into a Spot Bitcoin ETF, probably in reaction to competition posed by the Proshares and Valkyrie ETFs. If successful, the discounts seen on GBTC will be cleared quickly as ETFs tend to track their underlying much more closely.