Tweet enigmatic from the CEO:
The CEO of Grayscale, Michael Sonnenshein, hinted at a major event in the world of cryptocurrencies with an enigmatic tweet.
GBTC discount reduction:
The Grayscale Bitcoin Trust (GBTC) is experiencing a rapid reduction in its discount compared to its Net Asset Value (NAV).
Legal Impetus:
Recent legal developments, including a court of appeals decision, are bolstering hopes for a successful conversion.
The CEO of Grayscale, Michael Sonnenshein, hinted at a major event in the world of cryptocurrencies. In a recent tweet, he suggested that the approval of the conversion of the Grayscale Bitcoin Trust (GBTC) to an exchange-traded fund (the famous Bitcoin spot ETF) was on the horizon. His words, ‘It’s been ten years in the making. We are ready for the main event,’ sparked excitement within the crypto community, indicating that a breakthrough could be imminent.
The Grayscale Bitcoin Trust (GBTC), launched in September 2013, has had a unique journey over the past decade. What is particularly notable recently is the rapid reduction in the GBTC discount compared to its Net Asset Value (NAV). Currently at -10.35%, this is the narrowest discount since July 2021. This discount reduction is seen as a reflection of growing optimism surrounding the potential conversion to a Bitcoin spot ETF.
Regulation is set to evolve in favor of crypto ETFs?
Legal developments have further fueled hope for the conversion. A recent decision by the court of appeals has compelled the U.S. Securities and Exchange Commission (SEC) to reconsider Grayscale’s application, which had previously been denied. While there is no guarantee of approval, the SEC is expected to provide new grounds for rejection as its previous justification – that the Bitcoin futures market lacked a close link to the spot market – was deemed insufficient. This legal development has added to the anticipation of a successful conversion.
The CEO’s tweet and the GBTC discount reduction suggest that the world of cryptocurrency could soon witness the launch of a Bitcoin spot ETF – the long-awaited ‘main event’ for the industry.
