The Grayscale Bitcoin Trust (GBTC), a product that allows investment in Bitcoin (BTC) indirectly, has hit an all-time low with the leading cryptocurrency crashing significantly over the last few months.

The GBTC has been trading at a discount since the beginning of 2021 and recorded a new all-time low last week, The Block reported Monday. The price of GBTC was trading at a discount of -35.26% last Friday, confirming that the market price of the shares is lower than the net asset value or NAV by around 35%.

The GBTC shares hit a previous discount of -34% in 2021 which improved as Grayscale, a digital currency investing and cryptocurrency asset management firm, filed for the conversion of its GBTC into a Bitcoin spot ETF with the Securities and Exchange Commission (SEC).

The SEC rejected Grayscale's request for the conversion of GBTC to a Bitcoin spot ETF earlier this year while stating that the firm did not present sufficient protection measures for its clients.

The SEC said that the applicant did not present "means to prevent fraudulent and manipulative acts and practices sufficient to justify dispensing with the detection and deterrence of fraud and manipulation that is provided by a comprehensive surveillance-sharing agreement with a regulated market of significant size related to spot bitcoin."

Grayscale then sued the SEC as CEO Michael Sonnenshein added that the firm is "deeply disappointed by and vehemently disagree with the SEC's decision to continue to deny spot Bitcoin ETFs from coming to the U.S. market."

Along with the ongoing struggle with the SEC, the GBTC shares have been affected by the market turmoil as Bitcoin dipped below $19,000 Monday while Ether struggled to retain $1,300.

gbtc takes 25 percent of bitcoin supply 2020
The Grayscale Bitcoin Trust (GBTC) Absorbs 25 Percent of Annual Bitcoin Supply. Bloomberg
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