Something rather disturbing happened today with the Grayscale Bitcoin Investment Trust

I have owned GBTC in a retirement account for some time now, mostly enjoying the benefits of using retirement dollars to gain bitcoin exposure as well as benefit from an often rising premium in the GBTC fund itself.

However, it looks like that premium is completely gone, and then some.

The historical average for the fund is something like a 30% premium, though that number had been much lower over the past year or so, staying more around 10% or so for much of the last 12 months.

Then this happened:

(Source: https://ycharts.com/companies/GBTC/discount_or_premium_to_nav)

Currently trading at about a 4% discount to net asset value. Gross.

Here's some of this historical daily premium amounts:

(Source: https://ycharts.com/companies/GBTC/discount_or_premium_to_nav)

And this is as of yesterday, it's currently trading with roughly a 10% discount to NAV.

As far as I can tell this is pretty much the first time GBTC has traded at a discount for two consecutive days, in like 5 years, or ever.

What the royal heck?

My guess is this is related to two things, the new bitcoin ETFs coming out in Canada and other places finally giving investors some other options and the major route we had in the equity markets last few days.

Some people may have been forced to sell some things they probably didn't want to and GBTC may have been one of them.

I'm guessing this will be short lived and the fund will mostly trade near a zero level of discount/premium going forward due to the ETFs now providing other options.

What are your thoughts on it?

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