Grayscale (whose parent company Digital Currency Group also owns CoinDesk) has applied to convert the GBTC into an exchange-traded fund, or ETF. And for months, some traders have been monitoring the discount as a proxy for the likelihood of winning approval. According to the market logic, the GBTC would trade at par with the underlying bitcoin in the fund if the conversion goes forward; in other words, the discount would evaporate.

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