BlackRock has ‘50% chance’ of getting spot Bitcoin ETF approved: Analyst

Cointelegraph
Cointelegraph

28 Jun 2023 5:52 AM

BlackRock’s Bitcoin spot ETF application has a 50% chance of getting approved as the SEC looks to “save face” following an increasingly likely victory from Grayscale in their case against the regulator. ...

  • BlackRock has a 50% chance of getting its Bitcoin Exchange Traded Fund (ETF) approved, according to Bloomberg's senior ETF analyst Eric Balchunas.
  • Grayscale has a 70% chance of winning its lawsuit against the SEC over its bid to convert the Grayscale Bitcoin Trust (GBTC) to a Bitcoin ETF.
  • The SEC may be more favorable towards BlackRock's ETF filing as a way to "save face" compared to Grayscale.
  • Applications for Bitcoin ETFs have been submitted by various firms, including Fidelity, Invesco, Wisdom Tree, Valkyrie, JPMorgan, Morgan Stanley, Goldman Sachs, BNY Mellon, and Bank of America.
  • If approved, these firms would bring a combined $27 trillion in assets under management (AUM) into the digital asset market.
  • GBTC has seen a surge of over 134% in 2023, reaching its highest price since May 2022.
  • The discount rate of GBTC's share price compared to its net-asset-value has dropped to 31%, indicating a potentially more positive investor sentiment.
  • However, GBTC is still down over 65% from its all-time high price.

The sentiment in the article is mostly neutral, with discussions about the chances of approval for BlackRock's Bitcoin ETF and Grayscale's lawsuit against the SEC.

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