Grayscale’s Bitcoin Trust (GBTC) has experienced a reduction in its discount to net asset value (NAV) due to the emergence of new filings for spot bitcoin exchange-traded funds (ETFs). On June 23, GBTC was trading at a 31.32% discount to NAV, a decrease from the 44.02% discount on June 13. The price of GBTC can fluctuate based on investor demand, resulting in either a discount or premium to bitcoin. Previously, the fund traded at a premium until early 2021, when it shifted to a discount amid a crypto credit crunch.
The decrease in the discount likely indicates growing investor confidence in GBTC’s potential upgrade to an ETF, which the US Securities and Exchange Commission (SEC) has thus far prevented. Grayscale, the asset manager, has filed a lawsuit against the SEC regarding this issue.
The entrance of BlackRock into the race for spot bitcoin ETF approval has brought renewed hope to issuers seeking SEC approval. BlackRock’s surprise filing on June 15 has reinvigorated the competition. Following BlackRock’s lead, other issuers like WisdomTree and Invesco have resubmitted filings for their own funds.
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