Grayscale Bitcoin Trust Surges To Nearly 2023 Highs

In a notable development for the digital asset market, the Grayscale Bitcoin Trust (GBTC) has surged to near 2023 highs.

The increase came after the filing of a Bitcoin exchange-traded fund (ETF) by the world’s largest asset manager, BlackRock. The news of BlackRock’s ETF filing has profoundly impacted the sentiment surrounding Bitcoin and institutional investment vehicles.

BlackRock’s Bitcoin ETF Approval’s Impact On BTC Market

Market observers believe that the involvement of a renowned entity like BlackRock could potentially break the legal impasse and pave the way for broader acceptance of Bitcoin ETFs in the United States.

As a result, the Grayscale Bitcoin Trust witnessed a substantial rally, with data from the monitoring resource CoinGlass indicating that it almost reached its highest levels of 2023 on June 17.

This surge in value underscores the growing confidence among investors, who see the BlackRock ETF filing as a significant step toward legitimizing and mainstreaming Bitcoin investments.

The growing interest in GBTC

Furthermore, there are clear indications of heightened interest in GBTC beyond mere sentiment. CoinGlass reports that GBTC is trading at a substantial discount, or negative “premium,” of -36.6% compared to the Bitcoin spot price, which is steadily rising.

Although the discount persists, it is notably narrower than at any other point this year, indicating an increased willingness among investors to acquire GBTC. The BlackRock ETF filing, however, has not been without its fair share of controversy.

While some argue that the proposed product is merely a Trust similar to GBTC, others take a more nuanced view, asserting that it can rightfully be referred to as an ETF.

Notably, Cory Klippsten, the CEO of Bitcoin financial services firm Swan, emphasized the validity of calling it an ETF amidst the ongoing debate among market commentators.

He said, “IT’S OK TO CALL IT AN ETF GUYS. Securities Act of 1933 filing under Form S-1, NOT Form N-1A (like 99% of stock ETFs.”

Also, the growing interest in GBTC has attracted various buyers, including hedge fund North Rock Digital.

Notably, North Rock Digital publicly announced its consistent accumulation of Grayscale trusts in recent weeks, particularly following the news of BlackRock’s foray into the Bitcoin market.

Overview Of Recent Bitcoin Market Trend

At the time of writing today, June 19, the cryptocurrency has experienced a relatively bearish tone in the past hour and 24 hours, with a decline of 0.08% and 0.40%, respectively.

However, when examining a broader time frame, Bitcoin has displayed more positive movements than negative ones over the past seven days. 

Bitcoin has held a positive price change of approximately 1.90% during this period. The number one asset is trading slightly above $26,400, reflecting the current market sentiment.

While the short-term decline may indicate a temporary dip, the overall performance over the past week suggests a more positive outlook for the digital asset.

Read more: 

• Grayscale’s Ethereum Trust Files with The SEC to Receive Reporting Status