bitcoin (BTC) BlackRock's plans appear to have sparked a rally in institutional BTC investment vehicle "OG."
Monitoring resource data glass coin shows that on June 17, Grayscale Bitcoin Trust (GBTC) nearly hit new 2023 highs.
GBTC โpremiumโ heads below -37%
Bitcoin market sentiment showed a modest improvement late last week when news emerged that the world's largest asset manager BlackRock had presented to launch a Bitcoin spot price exchange-traded fund (ETF).
While not yet allowed in the United States, a spot ETF from a stalwart entity like BlackRock should have a better chance of breaking the legal impasse, some say.
In the meantime, however, signs of optimism beyond sentiment are becoming clearer, with GBTC trading long at a significant discount to BTC pointwhich is on the way up.
According to CoinGlass, that discount, or a negative "premium" used to characterize GBTC share prices, currently sits at -36.6%.
While still deeply discounted, GBTC is trading closer to zero than at 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 $GBTC," Adam Cochran, partner at venture capital firm Cinneamhain Ventures, wrote in part of the Twitter comment over the weekend.
"Because Blackrock will show the way to conversion, and GBTC's more than 40% discount will be solved in addition to the growth of the industry."
Cochran said he thought BlackRock's offer has a "good chance" of winning US regulatory approval.
โVery different structure to other efforts of a giant that does not lose. 30 act redeemable trust with redemptions (unlike GBTC) + proposed rule change filing. They came to play,โ he said. aggregate.
ARK has not yet joined the latest buyers
BlackRock's move is already embroiled in a controversy of its own, as market commentators argue over whether it is, in fact, an ETF.
Related: Why is the crypto market rising today?
Some argue that it will simply be a GBTC-like Trust, while others, including Cochran, take a more nuanced view.
In the ETF vs Trust debate, many ETFs have alternative structures.
This is an ETF like a redeemable trust, not GBTC.
The Trust component is basically what allows them to list stocks that represent X amount of BTC, since it doesn't process BTC units directly in a clearinghouse.
โAdam Cochran (adamscochran.eth) (@adamscochran) June 16, 2023
"IT'S OK TO CALL IT ETF GUYS," Cory Klippsten, CEO of Bitcoin financial services firm Swan, summarized.
โSecurities Act of 1933 which is filed under Form S-1, NOT Form N-1A (like 99% of stock ETFs). It will be traded on the stock market and will be redeemable by the issuer. MUCH better than GBTC. We will now wait and see if the SEC approves the Blackrock Spot Bitcoin ETF.โ
Other than that, investor interest in GBTC is increasing as a result. Eager buyers include hedge fund North Rock Digital.
"We've been accumulating more grayscale trusts steadily over the past few weeks," he says. Announced After BlackRock.
โRR seems massively skewed at current levels. 50% advantage if Greyscale wins, which we expect, and a minimal disadvantage if they lose. This presentation could be a catalyst to see them adjust to more rational levels.โ
Meanwhile, one major holder that has yet to increase exposure is ARK Invest, which continues to hold around 5.37 million GBTC shares.
Data from Cathie's ARK, a dedicated tracking website for ARK Invest CEO Cathie Wood, confirm those holdings will gradually decline through 2023.
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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