Grayscale NAV outperforms BlackRock as IBIT posts first discount to Bitcoin since launch

BlackRock's iShares Bitcoin Trust recorded its first discount to its net asset value (NAV) on January 19, falling to a discount rate of -0.30%, according to official BlackRock data.

BlackRock discount on net asset value

“The above table and line chart provide information about the differences between the daily closing price of the fund's shares and the fund's net asset value. The closing prices are determined by the fund’s listing exchange.” – BlackRock

Conversely, after an extended period of steep discounts, Grayscale's (GBTC) net asset value is now slightly lower, sitting at just -0.27%, according to Y-Charts data. GBTC recorded a staggering 48% discount to net asset value on December 22nd. However, as the conversion to a spot Bitcoin ETF was expected, the discount increased and only reached -1.55% on the day of the conversion. The discount has continued to narrow, even surpassing some of the “Newborn Nine” Bitcoin ETFs like IBIT.

In its first week, the iShares Bitcoin Trust saw a fluctuating net asset value per share, starting at $26.59 and declining to $23.87 by January 19th. The trust's outstanding shares saw a significant increase from 400,000 to over 50 million over the same period.

The NAV premium/discount fluctuated slightly, registering a premium of 0.16% on launch day, peaking at 0.42% on January 17 before declining to a discount. This change indicates investors' valuation of the shares relative to the underlying Bitcoin assets held by the trust. A premium suggests the shares are valued higher than the net asset value, while a discount indicates a lower valuation. The reference rate for Bitcoin used was $41,898 and was calculated between 8:00 p.m. and 9:00 p.m. GMT (3:00 p.m. – 4:00 p.m. EST), as shown in the table below.

CF Benchmarks Index BRRNY

The underlying Bitcoin price has fallen towards the psychological support of $40,000 and is trading at $40,840 at press time, while IBIT shares are trading at $23.39 pre-market after trading on Friday, November 20th January 19, closed at $23.80.

As a result, IBIT shares have fallen 1.72% since Friday's trading session. In contrast, the underlying asset Bitcoin will have fallen by around 2.5% if it does not recover before the benchmark interest rate (BRRNY) is calculated later today. Should IBIT shares trade in line with Bitcoin throughout January 22, the discount will likely reverse and rise to a premium that could potentially be as high as 0.7% based on current calculations. However, since the primary market does not open for several hours, IBIT could fill this gap during official trading hours.

Due to the lag in reporting ETF data, the impact of reported NAV is limited. In its prospectus, BlackRock announced that it would publish an indicative intraday Nav (IIV). However, this data is not published on the official website but should be available at IBIT.IIV via Nasdaq trading terminals.

Since its launch, iShares Bitcoin Trust's assets under management (AUM) has reached $1,346,912,907.59, with 33,430 BTC under management. This highlights the scale at which the trust operates and the level of investment it has attracted in a short period of time. Along with the increase in shares outstanding, the trust's overall health suggests growing investor interest, as the number of shares has increased more than tenfold.

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