Grayscale's bitcoin fund, GBTC, has reached a 0% discount to net asset value for the first time since February 2021 after receiving approval from the US Securities and Exchange Commission to convert into a spot bitcoin exchange-traded fund (ETF). The fund previously traded at a discount to the price of bitcoin it held, hitting record lows of nearly 50% in December 2022. The discount began to narrow as expectations of an ETF approval surfaced last summer and on rising bitcoin sentiment. The conversion to an ETF allows for an arbitrage mechanism that enables market makers to create or redeem shares at their discretion, which should prevent future discounts.