The recent legal victory of Grayscale against the U.S. Securities and Exchange Commission (SEC) has reignited investor interest in crypto-based financial products. A federal court ruled that the SEC’s rejection of Grayscale’s Bitcoin spot ETF application lacked sufficient justification, marking a pivotal moment for institutional crypto adoption. While the final approval is still pending, this development has already had a significant impact on market sentiment and the performance of Grayscale’s suite of crypto trusts.
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Market Reaction: Surge in Trust Demand
Following the court ruling, trading volumes for Grayscale’s Bitcoin Trust (GBTC) spiked to 20 million shares — the highest since June 2022, amid the broader market downturn. More notably, GBTC’s discount narrowed to 18.06%, the lowest level recorded in 2025. This tightening reflects growing confidence among investors that a spot Bitcoin ETF could soon be approved in the U.S.
According to Matteo Greco, Research Analyst at Fineqia, "The sharp reduction in GBTC’s discount indicates rising market expectations for ETF approval. Investors are stepping in to buy shares at a discount, anticipating future price convergence with the underlying asset."
This trend isn't limited to Bitcoin alone. Across Grayscale’s portfolio, multiple crypto trusts have seen their discounts shrink or even turn into premiums — a clear signal of increasing institutional and retail demand.
The Shift from Discount to Premium: A Broader Trend
As of mid-2025, only 7 out of Grayscale’s 14 crypto trusts remain at a discount, down from 11 at the beginning of the year. Over the past eight months, four products — Stellar (XLM), Decentraland (MANA), Horizen (ZEN), and Basic Attention Token (BAT) — have transitioned into positive premium territory.
This shift is driven by two key factors:
- Bullish crypto market conditions boosting asset valuations
- Growing legitimacy as traditional finance embraces digital assets
At their lowest points in late 2024, major trusts faced steep discounts: BTC at -48.89% (December 14) and ETH at -59.61% (December 30). However, starting in June 2025, as BlackRock and other Wall Street giants filed for spot Bitcoin ETFs, investor appetite surged. The momentum accelerated after Grayscale’s legal win, pushing BTC and ETH trust discounts to their narrowest levels of the year.
Performance Highlights Across Key Trusts
Ethereum Classic Trust (ETCG)
Despite overall market improvements, ETCG remains the weakest performer. It began 2025 with a 76.69% discount, which only improved slightly to -50.49% — still the deepest discount across all Grayscale products.
Bitcoin Cash & Litecoin Trusts (BCHG, LTCN)
Both BCH and LTC, being proof-of-work (PoW) assets, outperformed Bitcoin in early 2025. BCHG’s discount shrank from -56.98% to just -5.56% on July 4 before retracing to -42.5% due to price corrections. Similarly, LTCN improved from -65.23% to a near-breakeven level of -19.03% by August 30.
Zcash Trust (ZCSH)
ZCSH briefly entered positive territory twice — reaching +4.65% on July 4 and +16.02% on August 3 — demonstrating short-term speculative interest in privacy-focused coins.
Stellar Trust (GXLM)
GXLM turned around in late January, shifting from discount to premium status. After consolidating below 10%, it exploded in June, peaking at an astonishing 417.75% premium on July 1. As of now, it maintains a robust ~150% premium, reflecting strong investor sentiment toward enterprise blockchain solutions.
Horizen Trust (HZEN)
HZEN began showing premium behavior in June and hit a high of 47.89% on July 21, indicating renewed interest in privacy and scalability projects.
Basic Attention Token Trust (GBAT)
After languishing at around 40% discount in early 2025, GBAT surged in late June, reaching a peak premium of 42.46% on July 1 — aligning with increased adoption of privacy-centric web browsing and digital advertising models.
Chainlink Trust (GLNK)
GLNK has been one of the most consistent performers, maintaining a positive premium throughout the year. It reached an impressive high of 251.35% on July 4, underscoring confidence in decentralized oracle networks.
Decentraland Trust (GMANA)
MANA has been in premium territory since March, peaking at 158.58% on July 20. It continues to trade above 50% premium, highlighting enduring interest in metaverse-related assets.
Filecoin Trust (FILG)
FILG started the year already at a 109% premium, reflecting early bullishness around decentralized storage. The premium soared to 783.05% on July 14, making it one of the top-performing Grayscale trusts.
Livepeer Trust (GLIV)
GLIV entered premium territory in May, peaking at 26.7% on July 6. However, it later reversed course and now trades at a 30% discount, showing volatility linked to niche infrastructure protocols.
Solana Trust (GSOL)
GSOL stands out due to its unique listing history. Launched in November 2021 but only made available for OTC trading in April 2025, it debuted with a 144.17% premium. Since then, it has consistently traded above 100%, reaching a high of 356.52% on August 15 and currently sits around 270%, reflecting strong demand for high-performance blockchain platforms.
👉 Learn how premium trends can signal deeper market movements in crypto investments.
Why Premiums Matter for Investors
A narrowing discount or rising premium indicates that investors are willing to pay more for exposure through regulated vehicles like Grayscale trusts — often because they expect future ETF approvals or enhanced liquidity. Buying a trust at a steep discount can offer higher yield potential if the gap closes, but persistent premiums suggest strong conviction and lower arbitrage risk.
Moreover, trusts with sustained premiums may indicate:
- Stronger governance and transparency
- Higher institutional ownership
- Anticipation of secondary market benefits or conversion into ETFs
Frequently Asked Questions
Q: What does a negative premium mean for a Grayscale trust?
A: A negative premium (or discount) means the trust is trading below the net asset value (NAV) of its underlying cryptocurrency. For example, GBTC at -18% means investors can buy Bitcoin exposure at a 18% discount.
Q: Why do some Grayscale trusts trade at a premium?
A: Premiums occur when demand exceeds supply, often due to restricted inflows, regulatory uncertainty, or anticipation of future ETF conversion. High premiums reflect investor confidence in long-term value.
Q: Can I profit from the discount/premium spread?
A: Yes — if the trust eventually converts to an ETF, the price should converge with NAV. Investors buying at a large discount may benefit from this "convergence play," though timing is uncertain.
Q: How often are Grayscale trust prices updated?
A: Prices are updated daily based on over-the-counter (OTC) trading data. Premium/discount calculations use the latest NAV and market price.
Q: Are Grayscale trusts safer than holding crypto directly?
A: They offer custodial security and regulatory oversight but come with management fees and potential liquidity constraints. They’re ideal for traditional investors wary of self-custody.
Q: Will all Grayscale trusts become ETFs?
A: Not necessarily. Only assets deemed non-securities by regulators are likely candidates. Bitcoin and Ethereum have stronger cases; others face more hurdles.
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Final Thoughts
Grayscale’s legal breakthrough has catalyzed a transformation across its trust ecosystem. From shrinking discounts to explosive premiums, investor behavior reflects growing optimism about crypto’s integration into mainstream finance. Whether you're evaluating GBTC’s convergence potential or assessing high-premium plays like GSOL and FILG, understanding these dynamics is crucial for strategic allocation.
As regulatory clarity improves and more institutions enter the space, the line between traditional finance and digital assets continues to blur — creating new opportunities for informed investors who act with discipline and insight.
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