The price of Grayscale Bitcoin Trust (GBTC) versus the bitcoin it actually holds hit an all time low on Wednesday, with the discount ratio reaching 47.3%, according to data from The Block.

The GBTC discount hit a previous all-time low on Nov. 21, when it reached 45.2%. Concerns over the liquidity profile of Grayscale's sister firm Genesis have put pressure on the fund. One hedge fund is suing Grayscale to force redemptions from the fund.

GBTC trades at a discount to the net asset value (NAV), as shares in the fund don't grant the holder access to the underlying assets. Shares traded at a premium until early 2021 before flipping to a discount. As a result, the market price of GBTC shares is over 47% lower than the value of the bitcoin in the fund or its net asset value (NAV).

(by Adam Morgan McCarthy)