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Chart of the Week: Greyscale BTC Trust Dislocates from Bitcoin Price

Author: Tim Sharp

Researcher: Jack Williams

Published: January 25, 2023

Greyscale Bitcoin Trust, a widely used vehicle for investors looking to gain exposure to Bitcoin whilst remaining within the safety of a stock exchange, has been on a wild ride the past 24 months. A journey that in early 2021 saw the trust NAV exceed the price of the BTC it holds within, now trades at a steep discount to the real Bitcoin asset itself.

NAV or the Net Asset Value is the value of the underlying asset relative to the price of the trust it is held within. Discount to NAV on Greyscale has climbed as investors offloaded cryptocurrency and growth stocks in recent months as inflation and interest rates soared.

Once trading at a 26%+ premium to the Bitcoin price, Greyscale Bitcoin Trust now trades at a steep 48.23% discount to Bitcoins price of $17,000 at the current time of writing, meaning Greyscale’s Bitcoins are currently worth around $9200 on a NAV adj basis.

 

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