The price of Grayscale Bitcoin Trust (GBTC), the world’s largest listed Bitcoin fund, continued to rise on the morning of June 20. The discount rate shrunk to 33%, the lowest since September last year, and below the 34% recorded in early March.
On the 15th, asset management giant BlackRock filed a Bitcoin ETF (Exchange Traded Fund) application with the U.S. Securities and Exchange Commission (SEC), raising optimism about the possibility of GBTC’s ETF conversion. The background is that it is spreading.
GBTC prices on the secondary market topped $16 for the first time since May 10, according to TradingView data. At the time of this writing, the stock is trading around $15.90, up about 24% since BlackRock filed on May 15.
Buying in anticipation of ETF conversion
Investing in the potential future redemption of GBTC following news of BlackRock’s ETF filing and Grayscale’s potential victory in a lawsuit against the SEC seeking to convert GBTC into an ETF The optimism of the house sent GBTC prices skyrocketing. GBTC is currently not redeemable, so the price is discounted.
“Many see BlackRock’s confidence[in the ETF filing]as a sign that Grayscale will win its lawsuit against the SEC,” said macro analyst Noelle Acheson. He pointed out that he wants to hold until the ETF application.
“While this does not mean that GBTC can be converted into ETFs immediately if Grayscale wins (depending on whether SEC Chairman Gensler resists with more means), GBTC holders will be able to will certainly be more likely to be able to redeem in the near future.”
Continued to be a closed-end model
“Given the still low liquidity of GBTC, the discount rate has further decreased,” said Vetle Lunde, an analyst at cryptocurrency research firm K33 Research.
At the current discount rate, “the market still shows that GBTC will remain closed-end until 2042 (adjusted for annual fees),” Lunde said. He said he expects stocks to remain significantly cheaper in 2020-2021 after a rebound in leverage build-up.
Fidelity denies ETF application
Rumors have also surfaced that mutual fund giant Fidelity Investments may apply for a Bitcoin ETF and possibly acquire Grayscale. A Fidelity spokesperson told CoinDesk that it has not made its application plans public, but said it had not filed or re-applied since its March 2021 Bitcoin ETF was rejected. .
｜Translation: coindesk JAPAN
｜Editing: Rinan Hayashi
| Image: Nikhilesh De/CoinDesk
｜Original: GBTC Share Price Soars, Discount Narrows to Multi-Month Low on BlackRock ETF Filing Optimism