The Grayscale Bitcoin Trust Discount Hits Lowest Level in Almost Two Years
The discount of the Grayscale Bitcoin Trust (GBTC) to its net asset value (NAV) has dropped to its lowest level in nearly two years. The discount, which represents the difference between the market price of each GBTC share and the value of the bitcoin it represents, is currently trading below 16%. This narrowing trend suggests increased optimism that the Securities and Exchange Commission (SEC) will approve a spot bitcoin exchange-traded fund (ETF) in the US.
SEC Decides Not to Appeal Grayscale Ruling
The SEC had until midnight on Friday to appeal a ruling involving Grayscale’s attempt to convert its GBTC fund into a spot bitcoin ETF. However, the deadline passed without an appeal from the SEC. The court is expected to confirm its instruction for the regulator to re-evaluate Grayscale’s application. While this decision is positive for the potential approval of a spot bitcoin ETF, it does not guarantee immediate approval.
Bitcoin Price Rises Following News of No Appeal
Following reports that the SEC would not appeal the Grayscale ruling, bitcoin experienced a 1% increase on Friday. This upward trend continued over the weekend and into Monday morning, with bitcoin up nearly 4% since the deadline passed. It is currently trading at around $27,750.
Hot Take: Increased Optimism for Spot Bitcoin ETF Approval
The narrowing discount of GBTC and the SEC’s decision not to appeal the Grayscale ruling indicate growing optimism for the approval of a spot bitcoin ETF in the US. While this is a positive development, approval may still take time and is not guaranteed. The market will now shift its focus to upcoming decision deadlines for delayed spot bitcoin ETF applications from other issuers. Overall, the cryptocurrency market remains hopeful for the future of bitcoin and the potential for increased regulatory acceptance.
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