Grayscale Bitcoin Trust Discount Narrows to Lowest Since May 2022
Buying for the trust has picked up on hopes the SEC might soon approve a spot bitcoin ETF.
The discount to net asset value (NAV) for the $19 billion-plus Grayscale Bitcoin Trust (GBTC) continues to narrow in the wake of asset manager BlackRock’s (BLK) application to open a spot bitcoin ETF in the United States.
The discount to NAV had ballooned to nearly 50% late last year and spent most of 2023 in a range on either side of 40%, a steep narrowing trend following BlackRock’s mid-June filing with the U.S. Securities and Exchange Commission (SEC). It fell to as low as 26% at one point last week – the trimmest level since May 2022 – and currently sits at about 27%, according to data from .
BlackRock’s move for a spot bitcoin (BTC) ETF set off a number of filings and re-filings for similar funds from a number of other industry actors, fellow asset management giant Fidelity. The moves by such powerful players have raised investor hopes that the SEC will finally approve a spot bitcoin ETF after years of rejections.
That, in turn, has fueled buying in the heavily discounted GBTC, which Grayscale nearly two years ago filed to convert to a spot bitcoin ETF. The Grayscale filing was among those SEC rejections, prompting the company to sue the agency, with a decision expected .
Lawyers for the Grayscale on Monday , with a court filing noting the SEC in late June approved a leveraged bitcoin futures-based ETF, an "even riskier" product than previously approved bitcoin futures ETFs.
While optimism for SEC approval of a spot bitcoin ETF is running high at the moment, continued investor caution could be warranted. "I had a really good laugh when we saw the BlackRock [spot bitcoin ETF] filing come out," said Opimas CEO and founder Octavio Marenzi, Monday morning. He took note that the BlackRock fund seeks to use Coinbase (COIN) as its crypto custodian even as that exchange is facing a lawsuit from the SEC.
Grayscale and CoinDesk are both owned by Digital Currency Group.
Edited by Stephen Alpher.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
What will the Fed’s rate cut mean for the global economy?
Share link:In this post: The Fed is set to cut interest rates for the first time since COVID, which will shake global markets, currencies, and commodities. A stronger dollar has crushed weaker currencies like the Japanese yen and Turkish lira, while central banks scramble to control inflation. Ray Dalio warns that the Fed’s decision could worsen the US debt problem and spark more political chaos ahead of the election.
With $SHIB and $DOGE Leading, Is $PEPE Set to Join the Rally?
Crypto investment and entrepreneurship: How to identify the base color of RWA projects?
VIPBitget VIP Weekly Research Insights
Liquid staking emerged after Ethereum transitioned from a proof-of-work to a proof-of-stake mechanism. Its primary goal is to enhance asset utility by allowing users to earn staking rewards while maintaining the liquidity of their staked positions. Currently, mainstream liquid staking protocols allow users to stake their assets in exchange for liquid staking tokens (LSTs). For instance, by staking ETH on platforms such as Lido, users receive stETH tokens. This approach is commonly referred to as "liquid staking derivatives" (LSDs). Since Binance hinted at collaborating with Sanctum to launch the Solana liquid staking token BNSOL, Sanctum's governance token CLOUD has gained significant attention, rising despite unfavorable market trends. On September 5, Bybit announced its partnership with Solayer to launch bbSOL. Additionally, major exchanges have unveiled plans to introduce Solana LST tokens. EigenLayer also began its second season of airdrop claims this week, with its governance token EIGEN potentially circulating by the end of September. The LSD and restaking sectors are gaining quiet momentum, potentially setting the stage for a new wave of hype around restaking within the SOL ecosystem.
Trending news
MoreCrypto prices
More
