The SEC’s Rejection Narrows Gap Between Bitcoin Price and GBTC Shares
The U.S. Securities and Exchange Commission (SEC) recently rejected Grayscale’s application to convert its Bitcoin Trust (GBTC) into an exchange-traded fund (ETF). As a result, the discount on GBTC shares to the value of Bitcoin has decreased to around 17%. GBTC manages $16.1 billion in assets and offers investors exposure to Bitcoin as a security.
The SEC now has a limited timeframe to respond to a U.S. Court of Appeals’ decision that mandated a reassessment of their refusal to greenlight the ETF conversion. Potential hurdles include the SEC’s possibility to appeal and further prerequisites. Additionally, the SEC has delayed its decision on several spot Bitcoin ETF applications until mid-October.
Market watchers believe that the timing of these proceedings is crucial for investors. The discount gap could either abruptly close, leading to a surge, or gradually narrow over several months depending on the progress of the process. Bitcoin’s price fluctuations during this period will also play a significant role.
Hot Take
The SEC’s rejection of Grayscale’s GBTC ETF application has led to a narrower gap between Bitcoin’s price and GBTC shares. Investors should closely monitor the developments and potential impact on the market.
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