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Grayscale Bitcoin Trust

James

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 <p class="is-style-lead">Grayscale Bitcoin Trust (GBTC) is seeing its smallest discount in nearly two years amid growing anticipation for potential approval of spot Bitcoin ETFs in the U.S.</p>
 <p>Recent figures from YCharts indicate that GBTC’s <a rel="noopener noreferrer nofollow" title="discount" href="https://thebittimes.com/tag/discount.html">discount</a> to Bitcoin’s net asset value (NAV) has contracted to 15.87% as of Oct. 13.</p>
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    <p lang="en" dir="ltr">THE GBTC DISCOUNT HAS NARROWED TO 16% AS THE MARKET BETS ON A BITCOIN SPOT ETF APPROVAL.<br><br>Grayscale's Bitcoin Trust, commonly known as GBTC, has experienced notable changes in its market dynamics. At the start of this year, GBTC was trading at a significant discount of 48.31%… pic.twitter.com/2nWLmvnewb</p>— The Wolf Of All Streets (@scottmelker) October 13, 2023
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 <p>The <a rel="noopener noreferrer nofollow" title="discount" href="https://thebittimes.com/tag/discount.html">discount</a> to NAV is a crucial metric that indicates how much a mutual fund or ETF is trading below its net asset value. It serves as a gauge to measure the gap between the trading price of a security and its actual worth.</p>
 <p>The narrowing of GBTC’s discount appears to have been influenced by the filing of spot Bitcoin ETF applications by BlackRock and other financial institutions in mid-June. Data reveals that the discount dropped from 44% on Jun. 15 to 26.7% by Jul. 5 and has been contracting ever since.</p>
 <figure class="wp-block-image size-full"><img decoding="async" width="1138" height="360" src="https://cdn.thebittimes.com/images/2023/10/16/449ea41f80a2a7ce20915bdae2b4851c.webp" alt="Grayscale GBTC discount hits 2-year low as market eyes BTC ETF approval - 1" class="wp-image-14204586">
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   GBTC’s Discount to NAV chart over the last 12 months | Source: YCharts
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 <p>Daan Rover, a prominent Bitcoin advocate, suggests that the market is factoring in the likelihood of spot Bitcoin ETF approval by the end of the year.</p>
 <p>Similarly, cryptocurrency investor Lyle Pratt predicts that the GBTC discount will continue to shrink in the coming weeks as the prospect of spot Bitcoin ETF approval becomes increasingly likely.</p>
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 <p>On Oct. 13, reports surfaced that the U.S. Securities and Exchange Commission (SEC) had decided not to contest Grayscale’s earlier legal victory, which aimed to convert its Bitcoin Trust into the first U.S.-based ETF investing directly in Bitcoin. Bloomberg ETF analyst James Seyffart referred to the <a rel="noopener noreferrer nofollow" title="approval" href="https://thebittimes.com/tag/approval.html">approval</a> of spot Bitcoin ETFs as a “done deal” following this development.</p>
 <p>Several leading investors, including Cathie Wood and Boaz Weinstein, appear to have astutely purchased GBTC shares during its recent period of high <a rel="noopener noreferrer nofollow" title="discount" href="https://thebittimes.com/tag/discount.html">discount</a>, thereby positioning themselves favorably for the subsequent narrowing.</p>
 <p>As Grayscale moves closer to converting its Bitcoin Trust into an ETF, questions remain about how the SEC will handle multiple Bitcoin ETF applications.</p>
 <p>On Oct. 15, Grayscale announced that the SEC’s 45-day window for seeking a rehearing had closed, indicating that a final mandate from the court is expected within a week.</p>
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    <p lang="en" dir="ltr">NEW: Statement from @Grayscale on the @SECGov’s decision to not seek a rehearing:<br><br>“The Federal Rules of Appellate Procedure’s 45-day period to seek rehearing has now passed. The Court will now issue its final mandate within seven calendar days. The Grayscale team remains…</p>— Eleanor Terrett (@EleanorTerrett) October 15, 2023
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 <p>Grayscale stated, “We remain operationally ready to convert GBTC into an ETF upon SEC <a rel="noopener noreferrer nofollow" title="approval" href="https://thebittimes.com/tag/approval.html">approval</a> and will share more details as they become available.”</p>
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  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> State Street expert: “Bitcoin ETFs approval is inevitable”
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/grayscale-gbtc-discount-hits-2-year-low-as-market-eyes-btc-etf-approval-tbt66503.html">https://thebittimes.com/grayscale-gbtc-discount-hits-2-year-low-as-market-eyes-btc-etf-approval-tbt66503.html</a></p>

Grayscale GBTC discount hits 2-year low as market eyes BTC ETF approval

TheBitTimes

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