The Grayscale Bitcoin Trust (GBTC) has been on a steady climb, nearing 2023 highs, following the news of BlackRock filing for a Bitcoin spot price exchange-traded fund (ETF). While the United States has yet to allow a spot ETF, many believe that BlackRock has the best chance of breaking this legal deadlock.
GBTC has long been trading at a major discount to the Bitcoin spot market, but optimism regarding BlackRock’s ETF filing seems to be influencing GBTC’s upward movement. Data indicates that GBTC’s discount, or negative “premium,” is currently at -36.6%. Although it’s still heavily discounted, GBTC is trading closer to zero than at almost any time this year. On June 13, the discount was closer to -44%.
Adam Cochran, a partner at venture capital firm Cinneamhain Ventures, believes that the BlackRock ETF approval could prove to be a significant boon for GBTC. Cochran expressed optimism regarding BlackRock’s offering getting approved, stating that their ETF has a “very different structure than other efforts by a behemoth who doesn’t lose.”
However, the BlackRock ETF is already shrouded in its own controversy as market commentators debate whether it should be called an ETF or a similar trust to GBTC. Some industry insiders, including Cory Klippsten, CEO of Bitcoin financial services firm Swan, believe the ETF designation is appropriate and that it will be better than GBTC.
Regardless of the label, growing investor interest in GBTC is evident. Hedge fund North Rock Digital is among the eager buyers, while ARK Invest continues to hold around 5.37 million GBTC shares, gradually declining through 2023.
As the market awaits the Securities and Exchange Commission’s (SEC) decision on BlackRock’s spot Bitcoin ETF, the debate lives on regarding the structure and implications of the ETF on the overall cryptocurrency market. Grayscale Bitcoin Trust and the supporters of BlackRock’s ETF proposition can only hope that regulatory approval comes in their favor for continuing the positive momentum.
Source: Cointelegraph
