• Grayscale’s Bitcoin Trust (GBTC) shares rose 12% on Jan. 9 to $9.65 and narrowed the discount to its net asset value to 38.55%.
• Bitcoin Magazine CEO David Bailey has started a campaign labeled „redeem GBTC“ to reduce GBTC’s 2% management fee.
• Community fears around GBTC heightened following its shares trading at a record discount of 50% in December.
On January 9th, Grayscale’s Bitcoin Trust (GBTC) witnessed a significant increase in its shares, jumping 12% to $9.65 and narrowing the discount to its net asset value to 38.55%. This was the largest one-day increase since February 2022. The news has been welcomed by the crypto community, who had become increasingly concerned by the record discount to net asset value of 50% that GBTC had been experiencing in December.
The jump in value follows a campaign launched by Bitcoin Magazine CEO David Bailey, titled ‘redeem GBTC’, which aims to reduce the trust’s 2% management fee. The campaign has already gathered considerable interest from investors, with Bailey tweeting that it had received over 2000 investors, representing 25% of GBTC shares. Institutional support has also been made available, further reassuring the crypto community.
The increase in value of GBTC has been viewed as a sign of the trust’s financial health, which had come into question due to the recent events in the cryptocurrency space. It is hoped that continuing campaigns such as ‘redeem GBTC’, as well as increased institutional support, will continue to boost the confidence of investors and create a more secure environment for the trust’s future.