GBTC: If You Liked It At A Premium, You Love It At A 30% Discount

GBTC now trades at a 30% discount to net asset value.Three Arrows Capital, previously a large holder of the shares, has fully liquidated its position.Grayscale is suing the SEC for yet another ETF conversion rejection and the Wall Street Journal seems to be siding with Grayscale.The Grayscale Bitcoin Trust (GBTC) is the flagship fund in Grayscale's digital product portfolio. It accounts for a little over $13 billion of the $17 billion in AUM that Grayscale has in its single asset funds. Over the last couple years, I've covered GBTC two times. The first time was in late 2019 when I was highly critical of the fund's management fee, marketing approach, and premium to NAV. The second time was 13 months later. The reason for writing the follow up was because I had changed my mind. That article is now a year and a half old. The setup is very different for GBTC at this point so I feel an update is warranted.The Discount RateWhat was still a 6% premium to NAV in January 2021 when I last covered the Grayscale Bitcoin Trust is now a 30% discount. Bitcoin (BTC-USD) was $31k when I wrote that article. Down 32% since then, the price action in Bitcoin has been pretty bad. For GBTC though, it's been even worse; down from just under $33 per share to $14. This price action also turned what had been a premium to net asset value for most of the fund's existence into a sizable discount.GrayscaleThe discount to net asset value is now roughly 30% i...