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Biggest Bitcoin Fund’s Woes Worsen as Discount Hits Record

  • GBTC sinks to record 14% discount to its underlying crypto
  • Trust acts like a ‘leveraged play’ on Bitcoin prices: Seyffart
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Bitcoin’s worst selloff since December is dealing a particularly harsh blow to the biggest fund tracking the cryptocurrency.

The Grayscale Bitcoin Trust (ticker GBTC) has dropped about 20% so far this week, nearly double the decline in the world’s largest cryptocurrency. The $36.4 billion fund, closed over 14% below the value of its underlying holdings on Wednesday as a result -- a record discount, according to data compiled by Bloomberg. The dislocation has deepened despite Grayscale Investment LLC parent Digital Currency Group Inc.’s plans to purchase up to $250 million worth of GBTC shares.