Grayscale bitcoin trust nears 2023 high as buyers step in, BlackRock ETF filing

BlackRock’s bitcoin (BTC) plans have sparked a rally in the “OG” institutional BTC investment vehicle.

data from monitoring resource coinglass Shows that on June 17th, Grayscale Bitcoin Trust (GBTC) reached a new high of around 2023.

GBTC “Premium” down -37%

Bitcoin market sentiment improved marginally late last week as the world’s largest asset manager BlackRock filed to launch a bitcoin spot price exchange-traded fund (ETF).

Although still not allowed in the United States, a spot ETF from a giant entity like BlackRock should have a better chance of breaking the legal impasse, some say.

In the meantime, however, signs of optimism beyond sentiment are becoming clear – GBTC, trading long at a substantial discount to BTC spot, is on the way.

According to CoinGlass, that discount, or a negative “premium,” which is used to denote GBTC share prices currently stands at -36.6%.

While still heavily discounted, GBTC is trading closer to zero than at almost any other time this year. For example, on June 13 the discount was close to -44%.

“If the BlackRock ETF is approved, the real winner here will be $GBTC,” said Adam Cochrane, partner at venture capital firm Cinemahan Ventures. wrote In part of the Twitter commentary over the weekend.

“Because BlackRock will lead the way in conversion, and GBTC’s 40%+ discount will solve at the top of industry growth.”

Cochran continued that he thought BlackRock’s offering had “good chances” of gaining US regulatory approval.

“Very different structure than other attempts by a giant who doesn’t lose. ’30 Act Redeemable Trust w/ Redemption (unlike GBTC) + Proposed Rule Change Filing. They came into play,” he couple,

ARK is not yet among the latest buyers

BlackRock’s move is already mired in controversy of its own, as market commentators debate whether it’s really an ETF.

Related: Why Is The Crypto Market Up Today?

some argue that it would simply be a trust similar to GBTC, while others, including Cochrane, take a more nuanced approach.

On the ETF vs. Trust Debate – Lots of ETFs have alt structures.

This ETF is a redeemable trust which is not like GBTC.

The trust component is basically what gives them a list of shares that represent X amount of BTC because it is not processing units of BTC directly at the clearinghouse.

— Adam Cochran (adamscochran.eth) (@adamscochran) June 16, 2023

“It’s okay to call it ETFs guys,” said Corey Klipstein, CEO of bitcoin financial services firm Swan. Abbreviation,

“Filing under the Securities Act of 1933 Form S-1, not Form N-1A (like 99% stock ETFs). Will trade on exchange and will be redeemable to issuer. Much better than GBTC. Now we’ll wait to see whether or not the SEC approves BlackRock’s Spot Bitcoin ETF.

Furthermore, investor interest in GBTC is increasing as a result. Among the eager buyers is hedge fund North Rock Digital.

“We have been accumulating more Grayscale Trust steadily over the past several weeks,” it announced Post-Blackrock.

“RR seems massively skewed at current levels. 50% upside if Grayscale wins, which we expect, and minimal downside if they lose. This filing could be a catalyst for them to tighten to more rational levels.

Meanwhile, one major holder not yet venturing out is ARK Invest, which holds approximately 5.37 million GBTC shares.

data from Cathy’s ArkA dedicated tracking website for ARK CEO, Cathy Wood, confirms a gradual decline of those holdings by 2023.

Magazine: Gary Gensler’s job at risk, BlackRock’s first bitcoin ETF and other news: Hodler’s Digest, June 11-17

This article does not constitute investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making decisions.