The Grayscale Bitcoin Trust (ticker GBTC) closed a record 45% below the value of its underlying coins on Friday, according to Bloomberg data. The shares fell another 5% on Monday. The dislocation has widened dramatically in recent weeks as GBTC — which can’t redeem shares to shift with cooling demand as traditional ETFs do — has fallen to a greater degree than Bitcoin itself.
Shares are being offloaded in the secondary market as the industry deals with shockwaves from crypto-exchange FTX’s bankruptcy this month. That sent the likes of Genesis into a tailspin, with the lender halting withdrawals last week — fueling questions about the health of its parent company, Digital Currency Group, which also controls digital-asset manager Grayscale Investments. Fears of fallout among already shellshocked investors likely explains why GBTC is selling off to a greater degree than Bitcoin itself, according to Bloomberg Intelligence.