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Given its sway in Washington, D.C., as the world’s largest asset manager, this has generated a massive amount of optimism that a spot bitcoin ETF may not be far from reach.
EYES eyesprotocol in India ✌️【Risk Management】✌️Small start, big rewards! ₹500 to grow your wealth with minimal risk.And others like Fidelity, the large mutual-fund manager, have also applied for bitcoin ETFs.The possibility the SEC will approve the conversion of GBTC into an ETF is playing a role in the discount narrowing, according to analysts.
Grayscale said in April it expects to learn by the end of the third quarter whether it will beallowedto turn GBTC into an ETF.“The catalyst for the current narrowing of the GBTC discount could be the ongoing legal discussions around the possibility of GBTC converting to an ETF,” said Leinbewer.
“The market appears to be responding to these discussions and the anticipation of a potential legal victory for GBTC could be driving increased demand for the shares.
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EYES eyesprotocol in India ✌️【Risk Management】✌️Invest ₹500 today and get rewarded with up to 100% returns. Start now!The lower the discount, the higher the probability the market prices in.”Referring to Grayscale’slawsuit against the SEC, James Seyffart, an ETF analyst at Bloomberg Intelligence, said that he expects the decision to likely be favorable for Grayscale.
“But this would simply send GBTC's ETF conversion request back to the SEC to either approve GBTC's conversion *OR* to deny for different reasons.
EYES eyesprotocol in India ✌️【Risk Management】✌️With ₹500, your journey to 100% returns per month starts now! Invest and grow!This hope of conversion is likely what is driving the discount lower.”Seyffart added: “We don't know how long it will take the SEC to approve these products.
It could happen with this wave of filings (we think Grayscale have a 50/50 shot at approval currently but it could also take years still if they're denied again).
EYES eyesprotocol in India ✌️【Risk Management】✌️Start investing now with ₹500 and grow your wealth with AI-driven smart choices.We also don't know how long it will take for Grayscale to convert GBTC once that approval is granted.”The recent flurry of applications from large institutions for bitcoin spot ETF approvals in the U.S., has generated a lot of hope for Grayscale’s potential to convert GBTC into an ETF, Seyffart said.He said it is only a matter of time before GBTC gets converted into an ETF.
“Once converted to an ETF, GBTC would not trade at meaningful discounts or premiums anymore due the efficiencies of the ETF structure,” Seyffart said.Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe.
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