Traders betting that regulators will approve a US spot Bitcoin exchange-traded fund sooner rather than later have all but evaporated a once-gargantuan discount on the world’s biggest crypto fund.

The $24 billion Grayscale Bitcoin Trust (ticker GBTC) is currently trading at a roughly 8% discount to its underlying Bitcoin holdings, the narrowest dislocation in over two years, Bloomberg data show. GBTC entered 2023 with a record discount of nearly 50%.