- Grayscale Bitcoin Trust (GBTC) discount is 10.35% at press time.
- The improved discount level coincides with the flagship crypto’s recent rally.
- There are indications that the shrinking discount connects to the anticipated ETF launch.
Data from YCharts, a financial research and analysis platform, shows that the Grayscale Bitcoin Trust (GBTC) discount is at 10.35%, a level it has not reached since July 2021. The improved discount level coincides with the flagship crypto’s recent rally, which saw BTC move close to $38,000 for the first time in 18 months.
There are indications that the shrinking GBTC discount connects to the anticipated launch of a spot Bitcoin ETF. In a recent development, the U.S. Securities and Exchange Commission (SEC) reportedly initiated discussions with Grayscale Investment about converting the company’s Bitcoin trust to a spot Bitcoin ETF.
Data from ByteTree, a platform for financial investment content, shows that the number of Bitcoins held by funds has reached a record high of over 865,000 BTC. This coincides with the growing enthusiasm among investors over the likelihood of spot Bitcoin ETF approval soon.
Furthermore, BlackRock’s recent announcement of plans to issue an Ether-based ETF influenced crypto market sentiment. Observing the ETH/USD 1-Day chart, ETH surged on the back of the announcement, reaching a seven-month high and outperforming Bitcoin on the day. ETH’s price climbed above the critical $2,000 price level, with the bulls pushing to sustain it above that threshold.
Kenny Estes, CEO of Diffuse Funds, reportedly said that BlackRock’s decision to apply for an Ether ETF reflects the financial giant’s confidence level over its spot Bitcoin ETF application. Estes thinks the approval is a predetermined action, something the BlackRock team is confident about.
BlackRock is one of the several institutions that applied for a spot Bitcoin ETF. The SEC’s decision over the applications is still unknown, despite the growing optimism among users over the likelihood of spot ETF approvals.
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