Calculating the Grayscale Bitcoin Trust (GBTC) discount involves determining the difference between the trust’s net asset value (NAV) per share and its market price. For instance, if GBTC’s NAV is $10 per share and its market price is $9, the discount is 10%.
Understanding the GBTC discount is crucial for investors as it provides insights into the premium or discount at which the trust trades relative to the underlying asset, Bitcoin. Calculating the discount can aid in making informed investment decisions and monitoring market sentiment towards Bitcoin.