As the crypto market continues to bleed over the past days, shares of the Grayscale Bitcoin Trust have extended their losses in relation to the price of bitcoin held in the fund.

GBTC Premium hits new lows:

According for data Last of Coinglass The negative premium for GBTC has reached a new all-time low, as Bitcoin struggles around the $35,000 mark.

“GBTC” has been trading in a continuous decline since February of last year, recording a decline of 30%.

Grayscale Bitcoin Trust is an investment vehicle offered by Grayscale Investment Corporation, one of the largest investment managers for institutions venturing into the cryptocurrency space.

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The GBTC Fund allows institutional investors to be exposed to Bitcoin through a regulated traditional investment vehicle without directly buying, selling or storing the asset.

Each GBTC share represents approximately 0.00095 Bitcoin and tracks the price of Bitcoin.

The shares have a minimum holding period of six months and a minimum investment of $50,000, which makes it very difficult for retail investors to join.

Recently and with the recent drop in institutional demand for cryptocurrencies, Trust shares have been trading at a steep discount.

The premium is the difference between the price of the underlying asset, bitcoin in this case, and the value of the Trust’s shares.

The recent decline can be attributed to several factors, including the launch of several exchange-traded funds (ETFs), which provide institutional investors with an alternative to investing in bitcoin via a regulated stock market instrument.

Bitcoin ETF:

Last year, Grayscale applied to convert its Bitcoin Trust into a Bitcoin ETF, which will be backed by physical units of the cryptocurrency and not just linked to it through derivative contracts.

However, the US Securities and Exchange Commission (SEC) has yet to show any signs of approving the spot bitcoin ETF, citing several regulatory concerns.

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Just a few days ago, “First Trust and Skybridge Bitcoin Trust” joined the long list of bitcoin ETF applications rejected by the US Securities and Exchange Commission (SEC).

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