BlackRock’s Bitcoin (BTC) plans seem to have sparked a rally in institutional BTC investment vehicle “OG”.
Data from resource monitoring Queen Glass It shows that on June 17, the Grayscale Bitcoin Trust (GBTC) reached a new high of around 2023.
GBTC “premium” trending lower than -37%
Bitcoin market sentiment showed a modest improvement late last week as news emerged that the world’s largest asset manager, BlackRock, had placed an order to launch a foreign exchange exchange fund (ETF).
While still not allowed in the US, an instant ETF from a powerful entity like BlackRock should have better chances of breaking the legal deadlock, some say.
However, in the meantime, signs of optimism beyond sentiment are becoming more apparent, with long GBTC trading at a significant discount to spot BTC, which is on its way higher.
According to CoinGlass, this negative discount, or “premium,” used to differentiate GBTC stock prices, is currently -36.6%.
Although GBTC is still heavily discounted, it is trading near zero compared to almost any time this year. On June 13, for example, the discount was closer to -44%.
“If the Blackrock ETF is approved, the real winner here will be the USD GBTC,” Adam Cochran, partner at venture capital firm Cinneamhain Ventures, said. books In part from a Twitter comment on the weekend.
“Because Blackrock will offer the funnel, GBTC 40% + discount will be at the forefront of industry growth.”
Cochran said he believes BlackRock’s bid has “good prospects” of gaining approval from US regulators.
“Quite a different structure than other efforts by a giant that doesn’t lose. ’30 recoverable trust with redemptions (unlike GBTC) + proposed rule change file. They came to play.” added.
ARK has not yet joined the latest buyers
The BlackRock move is already shrouded in controversy of its own, with market commentators debating whether it is, in fact, an ETF at all.
Related: Why is the cryptocurrency market soaring today?
some Argues that it would simply be a similar trust to GBTC, while others, including Cochran, take a more nuanced view.
“It’s okay to call the ETF guys,” Corey Clepsten, CEO of financial services firm Bitcoin Swan, says. summary.
“Securities Act of 1933 Filing under Form S-1, not Form N-1A (like 99% of ETFs). It will be exchange-traded and redeemable to the issuer. Way better than GBTC. Now we’ll wait and see if it’s a commission Securities and Exchanges Will Approve Blackrock’s Bitcoin Spot ETF.”
Regardless, investor interest in GBTC is increasing as a result. Among the eager buyers was hedge fund North Rock Digital.
“We have accumulated more grayscale trusts over the past several weeks.” announce After BlackRock.
“RR looks significantly skewed at current levels. Upside of 50% if Greyscale wins, which we would expect, and minimal downside if they lose. This scoring could be a catalyst to see it hang on to more sane levels.”
Meanwhile, ARK Invest, which still holds about 5.37 million shares of GBTC.
Data from Cathie’s ARK – A tracking site dedicated to Cathie Wood, CEO of ARK Invest – Confirms These holdings are gradually declining through 2023.
The Journal: Gary Gensler’s Job at Risk, BlackRock’s First Bitcoin ETF and Other News: Hodler’s Digest, June 11-17
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.
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