Grayscale Bitcoin Trust Shares Hit Yearly High, Discount Shrinks to 30% as Wall Street Giants Enter Crypto

Crypto News
Crypto News

28 Jun 2023 11:44 AM

Shares of Grayscale Bitcoin Trust reached a one-year high on Tuesday, fueled by renewed optimism about a conversion of the trust into an ETF....

  • The share price of Grayscale Bitcoin Trust (GBTC) reached a one-year high, driven by optimism about the potential conversion of the trust into an exchange-traded fund (ETF).
  • Reports of asset manager Fidelity Investments planning to file for a Bitcoin ETF contributed to the surge in GBTC's price.
  • GBTC experienced a 7.1% gain, closing at $19.47, its highest closing price since June of last year.
  • The spot price of Bitcoin (BTC) rose just 1.4% for the day, ending at $30,692.
  • BlackRock's filing for a Bitcoin ETF two weeks ago has also fueled GBTC's rally, with a surge of nearly 50% since then.
  • GBTC's discount to its net asset value (NAV) has narrowed to 30%, its lowest level since September, due to the price surge relative to BTC.
  • Invesco and WisdomTree have also applied to offer spot-based Bitcoin ETFs, adding to the optimism for GBTC's potential conversion.
  • Grayscale's lawsuit against the SEC, seeking to convert its Bitcoin Trust into an ETF, could further narrow the GBTC discount if successful.

The sentiment in the article is generally positive, as it highlights the rally in GBTC's share price and the optimism surrounding the potential conversion of the trust into an ETF. The news of Fidelity Investments and other financial services giants joining the Bitcoin ETF race has further fueled positivity.

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You May Ask

What caused the surge in Grayscale Bitcoin Trust's share price?How does the share price of GBTC compare to the spot price of Bitcoin?What impact did BlackRock's filing for a Bitcoin ETF have on GBTC's rally?Why is there optimism about Grayscale's lawsuit against the SEC?

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