The Grayscale Bitcoin Trust (G BTC + ) discount or premium to net asset value (NAV) has fallen below 10% for the first time in over two years.

This metric indicates how much lower the market price of each share is compared to the value of the bitcoin it represents. It fell to -9.77% by market close yesterday, the lowest level since July 2021, according to YCharts data.

GBTC trades at a discount because the shares cannot currently be redeemed, meaning the only option for shareholders is to sell them to other prospective buyers. However, it historically traded at a premium until a crypto credit crunch in 2021.

At the time, JPMorgan analysts attributed the collapse into discount territory to a combination of institutional investors selling GBTC to monetize the premium and the launch of new bitcoin exchange-traded funds in Canada.

As of the market close yesterday, GBTC shares were trading at $30.45. GBTC is up approximately +25% over the past month following the Securities and Exchange Commission’s decision not to appeal the ruling involving Grayscale’s attempt to convert its flagship GBTC fund into a spot bitcoin ETF.

The narrowing trend — seeing the discount shrink from over -40% before BlackRock and others filed spot bitcoin ETF applications in June — is likely a sign of increased optimism the SEC will approve a spot bitcoin ETF in the U.S., including the potential conversion of GBTC. The SEC met with Grayscale and BlackRock over their spot bitcoin ETF filings earlier this week.

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Cathie Wood’s Ark Invest sells over $2 million worth of GBTC in two days

Cathie Wood’s Ark Invest sold another tranche of Grayscale Bitcoin Trust yesterday, offloading 36,168 GBTC shares ($1.1 million) from its ARK Next Generation Internet fund (ARKW), according to the company’s latest trade filing.

Ark Invest also sold 32,980 GBTC ($1 million) from the same fund on Nov. 21, equivalent to more than $2 million shares over the past two days at current prices.

Earlier this month, the investment manager offloaded 139,506 GBTC shares ($3.8 million) from ARKW and bought 113,326 shares of Block, Inc. ($5.6 million) across three of its funds, following Cash App’s reported 22% rise in Q3 bitcoin profits.

Bitcoin is trading up 2.5% over the last 24 hours at $37,543, according to The Block’s price data.