• GBTC’s discount has widened to over 47%, a record low for the current year.
• This follows the struggles of its parent company Digital Currency Group (DCG) and its subsidiary Genesis filing for bankruptcy.
• Other Grayscale cryptocurrency trusts are trading at higher discounts against NAV, such as Grayscale Ethereum Trust at 52.80% and Grayscale Ethereum Classic Trust at 68.13%.
Grayscale Bitcoin Trust Discount Widens to Record Low
GBTC’s discount has widened to over 47% following the struggles of its parent company, Digital Currency Group (DCG). As of Feb. 15, GBTC shares are trading for $10.85 after increasing by 4.43% in the last 24 hours, according to ycharts data.
Troubles with Genisis Bankruptcy
The troubles stem from financial problems at one of DCG’s subsidiaries — Genesis — which filed for bankruptcy on Jan. 19. The crypto lender’s bankruptcy brought increased fears about the financial health of DCG and how it could impact Grayscale.
Digital Currency Group Raising Funds
Since then, DCG has been trying to raise funds by selling some of its assets. The asset management firm sold $22 million of its shares in Grayscale’s Ethereum (ETH) fund and is also looking to offload its news outlet CoinDesk.
Other Cryptocurrency Trusts Trading At Higher Discounts
Meanwhile, other Grayscale cryptocurrency trusts are trading at higher discounts against NAV. Grayscale Ethereum Trust is at a 52.80% discount while Grayscale Ethereum Classic Trust is at a 68.13% discount, according to ycharts data.