End of An Era: Grayscale’s Once Double-Digit Discount Evaporates

The Grayscale Bitcoin Trust’s long-awaited conversion into an exchange-traded fund has eliminated the fund’s discount, turning the page on an arbitrage trade that over the years has been both a slam-dunk and a heartbreaker.

The roughly $21 billion fund, known as GBTC, saw its price close at a 0.02% premium to its net asset value as of Thursday, data compiled by Bloomberg show. Before its conversion to an ETF last month, GBTC’s structure left it vulnerable to eye-popping premiums to its underlying holdings which then flipped to double-digit discounts.

GBTC’s once-hefty premium created one of the ...