GBTC discount suggests 20 new close-ended years
Still, at a 34% discount, GBTC is already an attractive long-term alternative for investors seeking BTC exposure. Given Grayscale’s 2% annual management fee, the fund would need to remain close-ended and fail to convert to an ETF in the next 20 years to justify its current discounts. This seems unlikely. When also accounting for the tendency of bitcoin to trade in a structural contango, this GBTC trade seems like a bargain. While many have hoped for an ETF conversion, a GBTC approval could be bearish short-term, creating huge sell-side pressure from funds taking advantage of the massive arbitrage in a cash-neutral long GBTC, short BTC trade.