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  3. /Grayscale Discount/Premium
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traditional-finance

Grayscale Discount/Premium

The difference between the market price of Grayscale trust shares and the net asset value of the crypto they hold.

Definition

The difference between the market price of Grayscale trust shares and the net asset value of the crypto they hold. Before spot ETFs, GBTC sometimes traded at a 40%+ discount because shares couldn't be redeemed. The discount closed when GBTC converted to an ETF in January 2024.

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Related Terms

ETF (Exchange-Traded Fund)

An investment fund that trades on stock exchanges like a regular stock.

Spot ETF

An exchange-traded fund that holds the actual cryptocurrency rather than futures contracts.

Bitcoin

The first cryptocurrency, created in 2009 by the pseudonymous Satoshi Nakamoto.

Accredited Investor

Someone who meets specific income or net worth thresholds set by regulators, qualifying them for investments not available to the general public.

Anti-Money Laundering (AML)

Laws and procedures designed to prevent criminals from disguising illegal funds as legitimate income.

Asset Allocation

How you divide your investments across different asset classes like stocks, bonds, crypto, and cash.

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