United

Bitcoin

Generation

Grayscale Bitcoin Trust

Institutional interest in Bitcoin investment vehicles has surged amid growing anticipation of potential regulatory changes in the United States.
Data from sources such as Bloomberg reveals that Bitcoin exchange-traded funds (ETFs) and similar instruments are experiencing near-record weekly inflows.
The prospect of the United States permitting a Bitcoin spot price-based ETF has not only influenced the price of Bitcoin but has also positively impacted the broader cryptocurrency ecosystem.
Alongside cryptocurrency exchanges and mining companies, institutional investment options that have faced challenges in recent times are witnessing a resurgence in demand.
According to Eric Balchunas, a senior ETF analyst at Bloomberg, at least two well-known investment options experienced significant trading volume during the week ending October 27.
One of them was the ProShares Bitcoin Strategy ETF (BITO), the first futures-based ETF to receive regulatory approval in the U.S. in 2021.
BITO saw a trading volume of $1.7 billion during the week, marking its second-highest weekly volume since its launch.
Another noteworthy performer was the Grayscale Bitcoin Trust (GBTC), which saw a trading volume of $800 million.
READ MORE: <a href="https://www.cryptointelligence.co.uk/united-nations-establishes-39-member-advisory-committee-to-address-global-ai-regulation/" rel="noopener noreferrer nofollow">United Nations Establishes 39-Member Advisory Committee to Address Global AI Regulation</a>
This increased activity helped narrow the discount of GBTC shares to the Bitcoin spot price, reaching its lowest level in two years.
William Clemente, co-founder of crypto research firm Reflexivity, commented that ETF trading is now “back in full steam,” highlighting the renewed interest in these investment vehicles.
GBTC has experienced a remarkable resurgence in recent months, even before Bitcoin’s 15% price increase in the previous week. Legal victories in the journey towards converting GBTC into a spot ETF provided momentum for this revival.
Currently, Grayscale’s product trades with an implied share price that is just 13.1% below the BTC spot price, according to data from CoinGlass.
Despite the optimism surrounding GBTC, investment management firm ARK Invest has reduced its holdings of GBTC in line with its share price gains.
ARK Invest is also planning to launch a Bitcoin spot ETF, and GBTC currently accounts for 10.24% of its ARK Next Generation Internet ETF—a notable change since November 2022.
In conclusion, the potential for regulatory changes in the United States regarding Bitcoin investment vehicles has sparked a surge in institutional interest and trading activity.
This trend, along with the narrowing discount of GBTC shares to the Bitcoin spot price, suggests a growing confidence in cryptocurrency investment options among institutional investors.
<a href="https://www.cryptointelligence.co.uk/crypto-intelligence-blockchain-council/" rel="noopener noreferrer nofollow">Discover the Crypto Intelligence Blockchain Council</a>

Institutional Bitcoin Investment Surges Amid Speculation of U.S. Regulatory Changes

Crypto Intelligence

2023년 10월 30일에 게재된 다른 기사

What to Expect from the November Fed Interest Rate Decision and Its Impact on Cryptocurrencies

Mintable CEO calls out the UK on NFT regulation

Elon Musk’s X platform implements crypto-style policy to tackle misinformation

DOGE, SHIB, and ADA hint at correction before bullish continuation

NU Stock Price: Bulls Making Breakout, Are Traders Ready to Surf?

XLM Price Prediction: Is Stellar Price Cheap at Current Levels?

무료 뉴스레터에 가입하여 매일 최신 암호화폐 소식을 받아보세요!