There is new hope that the US Securities and Exchange Commission (SEC) may finally approve a spot bitcoin ETF.
Grayscale’s Bitcoin Investment Trust (GBTC) is currently garnering some attention from investors, and its trading volume is testament to that fact. This comes after GBTC trading volume increased by over 400% within the last week.
As of June 14, GBTC still had a daily trading volume of $16.1 million. However, in just 5 days, this amount grew massively to almost $80 million.
Why is GBTC trading so high?
It may be interesting to note that asset management firm BlackRock filed For the spot bitcoin ETF on June 15th. This has undoubtedly brought renewed hope that the US Securities and Exchange Commission (seconds) can finally approve one.
If so, then Grayscale itself may be bullish about its proposal to convert GBTC into a spot bitcoin ETF. However Grayscale, like many others, has had its proposal rejected by the SEC so far. The SEC has always cited that its rejection of spot bitcoin ETF applications so far hinged on fears of market manipulation, among other things. However, Grayscale has sued the regulator since the previous rejection and filed a lawsuit against the SEC.
Also, unconfirmed reports Earlier this week it filtered through claims that Fidelity plans to acquire Grayscale. If this also turns out to be true, it helps GBTC’s cause with the SEC, especially with regard to Fidelity’s reputation as an older, traditional firm.
Whatever the case may be, there is a general sense of optimism surrounding BlackRock succeeding in its bid for a bitcoin ETF. And when that happens, it will hopefully pave the way for Grayscale to convert its non-redeemable trust shares as well.
This is the reason why GBTC is currently trading at such a high rate.
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his writing style. He firmly believes in the potential of digital assets and takes every opportunity to reiterate this. He is also an avid reader, a researcher, an astute speaker and a budding entrepreneur. However, away from crypto, Mayowa’s distractions include discussing soccer or world politics.
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