Grayscale Bitcoin Trust (GBTC), mcap=$2.2bn, price $12.25 vs $18.74

– Crypto fund at 31% discount to NAV aiming to convert to ETF.
– If successful, this would immediately close the discount.
– The application was initially denied by SEC due to a lack of ‘real’ exchange on which the underlying assets (mainly Bitcoin and Ethereum) trade.
– GBTC argues its underlying assets are hardly different from Bitcoin futures.
– The fund is soliciting people to write to SEC to petition for allowing the conversion.
– SEC will make a final ruling again on July 6th. Hedging is available via Bitcoin futures.

Valuation: Currently trades at a 30% discount to underlying assets, which are also 50%+ off from all-time highs.

Exp. gain: +44% if the discount to NAV closes fully.

Full GBTC write-up (free guest account required):

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