Bitcoin Approaches $28,000 as Grayscale’s ETF Prospects Improve
Bitcoin is once again nearing the $28,000 mark, with its spot ETF journey receiving positive news. Currently trading at around $27,700, Bitcoin reached a high of $27,958 on Monday morning. The recent bullish move is largely attributed to a legal update regarding Grayscale’s ETF aspirations. The Securities and Exchange Commission (SEC) has decided not to appeal an August court ruling that deemed its rejection of Grayscale’s Bitcoin ETF filing “arbitrary and capricious.” This development suggests that the SEC may reconsider the application in the future.
GBTC Discount Narrows as SEC Ruling Boosts Confidence
The Grayscale Bitcoin Fund (GBTC) has faced significant dislocations in price compared to Bitcoin due to its inability to allow investors to redeem for the underlying asset it aims to track. However, the discount on GBTC has now decreased to 15.8%, the lowest since late 2021. This positive change follows the SEC’s decision not to appeal the court ruling against blocking Grayscale’s Bitcoin ETF filing. It is worth noting that there are several other Bitcoin ETF applications currently being considered, including one from BlackRock.
Altcoins Show Positive Momentum
In addition to Bitcoin, several altcoins experienced gains on Monday. Solana, a layer-1 blockchain often referred to as an “Ethereum killer,” saw a significant increase of 5%, making it the top gainer among the market’s top ten cryptocurrencies. Despite this rise, Solana is still down 91% from its all-time high in November 2021. Another winner of the day was Binance’s native token, BNB, which rose by almost 3% overnight. Binance executed a $450 million burn of over 2 million BNB tokens, reducing its circulating supply.
Overall Market Performance
The wider cryptocurrency market saw a 2.4% increase overnight, adding approximately $24.8 billion to the total market cap of all cryptocurrencies. This positive momentum reflects the optimism surrounding Bitcoin’s spot ETF prospects and the gains made by various altcoins.
Hot Take: Crypto Market Benefits from Grayscale’s ETF News
The recent legal update regarding Grayscale’s Bitcoin ETF filing has had a positive impact on the crypto market. Bitcoin is approaching $28,000 once again as confidence grows in the potential approval of a spot ETF. The narrowing discount on GBTC indicates increased investor optimism. Altcoins such as Solana and BNB have also experienced gains, contributing to the overall growth of the cryptocurrency market. With regulatory developments favoring the expansion of ETF offerings and improving market sentiment, the future looks promising for crypto investors.
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