The leader in digital asset management, Grayscale, has expressed tremendous confidence about the potential transformation of its Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund (ETF) for Bitcoin.
This move might remove the current 8.09% discount on GBTC, or about $1.89 billion, bringing its share price closer to the true market value of Bitcoin and providing investors with significant upside.
The information was disclosed by Edward McGee, chief financial officer of Grayscale, and Craig Salm, chief legal officer. When the U.S. Securities and market Commission gives its approval, GBTC plans to move from its existing OTCQX platform to the esteemed NYSE Arca market. With this change, investors will be able to create or redeem shares more quickly and GBTC’s share price will be more closely aligned with the real market price of Bitcoin.
Eric Balchunas, an analyst for Bloomberg ETFs, noticed the noticeable dependence on Regulation M (Reg M) relief. He does not explicitly state that the SEC may use Reg M to block or delay specific activities, but he does allude to previous discussions that suggest this would be the case. Balchunas draws attention to the curious coincidence that Reg M was brought up immediately following Grayscale’s meeting with the SEC, indicating that it was probably a major consideration in their discussions.
Given that Bitcoin is currently valued at $39,481 and that trading volume has increased, suggesting that trader interest is increasing, the prospect of a spot Bitcoin ETF provides investors with a more realistic picture of the value of Bitcoin through GBTC and creates a more secure avenue for institutional capital to enter the cryptocurrency.
The price of Bitcoin has already increased by 3% in only the last day as a result of this news, and trade volumes have also significantly increased, indicating high interest.
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