GBTC Shares Soar 220% in 2023, Outpacing Nvidia and S&P 500 🚀

Grayscale Investment's Bitcoin Trust shares have surged by 220% to reach $26.79 this year, outperforming other assets like Nvidia Corp and the S&P 500. This performance is attributed to optimism surrounding the potential approval of the conversion of GBTC into an open-ended exchange-traded fund (ETF) focused on Bitcoin. The discount in GBTC shares relative to the trust's net-asset value has significantly narrowed from 46% to 13% this year as traders hedge downside risks by selling Bitcoin while buying GBTC shares. Once the conversion is approved, market makers are expected to bring the price back in line with the NAV. This strategy may have limited gains in Bitcoin earlier this year but could support upward pressure on the cryptocurrency as the GBTC discount narrows and the ETF conversion becomes more likely.