BTC with 20% discount
The Grayscale Foundation, the world's largest asset manager with more than 36 million crypto assets and the multi-million dollar BTC fund, is trading at a 21.23% discount.
According to official figures, since February 23 the foundation has presented a decrease in the price of the most traded cryptocurrency (BTC), on May 13 there was a historical fall accumulating almost three months with low performance in its activities, marking with a breaking point yesterday with another downturn that led to the 14.4% discount to the current figure.
The Grayscale organization is aimed at institutional entities such as pension funds, hedge funds or long-term multi-generational funds known as endowments. In fact, it has a variation of the Bitcoin currency called GBTC, which for the first time in three years is showing a significant decline.
This type of fund is a stock or financial asset that goes into a discount when its nominal value is less than the issue price. When the fund was launched in 2018, corporate options to invest in BTC were not widely used. However, today many people and companies buy and sell digital assets, other alternatives for large investors have appeared on the market.
Currently Grayscale wants to convert its fund into an ETF (exchange-traded fund), the main problem with this operation is that the US authorities that regulate this type of activity, such as the Securities and Exchange Commission (SEC), have postponed or it is assumed that discarded all ETF applications submitted not only by this organization but by others.
For this reason, the Grayscale Foundation extended the limits for the repurchase of shares in its trust. Now the company could commit at least $ 500 million, increasing its exposure to $ 750 million.
