GBTC’s Discount Shrinks as Spot Bitcoin ETFs Close In on Approval

BTC ETF Approval Odds Boost as Grayscale GBTC Discount Decreases to 16%

Grayscale GBTC discount drops to 16% amidst optimism for Bitcoin ETF approval.

It’s discount-mania in the world of digital assets! Grayscale’s Bitcoin investment vehicle, the Grayscale Bitcoin Trust (GBTC), is trading at its lowest discount in nearly two years. Who needs coupons when you can get discounted Bitcoin? This news comes as spot Bitcoin ETFs inch closer to potential approval in the United States. It’s like a Black Friday sale for investors, but instead of fighting over TVs, we’re fighting for ETFs!

According to the latest data from YCharts, GBTC’s discount to Bitcoin net asset value (NAV) has narrowed to a mere 15.87%. It’s like finding a hidden gem in a sea of fake Louis Vuitton bags. The discount to NAV is a measure of how far away a security is from its true value. It’s like finding out your favorite pizza place is giving away free pizza for a day, and you’re already three slices in!

But wait, there’s more! This narrowing discount is not just a random occurrence. It all started when BlackRock and several other financial institutions filed spot Bitcoin ETF applications in mid-June. The discount fell faster than a Bitcoin whale diving to the depths of the ocean. From 44% on June 15 to 26.7% by July 5, the discount has been on a diet. It’s shedding more weight than a contestant on a reality TV show, and it’s not stopping anytime soon!

Now, here’s a fun fact: the last time GBTC’s discount was this low was in early December 2021. Ah, those were the days when Bitcoin hit its all-time high price of $69,000. It’s like reminiscing about your favorite childhood toy that was always sold out. But fear not, Bitcoin advocate Oliver Velez believes this discount is a sign that the market is pricing in spot Bitcoin ETF approval by the end of the year. It’s like predicting the winner of a horsey race before the horses even line up!

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And it’s not just Oliver Velez who’s optimistic. Cryptocurrency investor Lyle Pratt believes GBTC’s discount will continue to “evaporate” over the next week or two as spot Bitcoin ETFs draw closer to approval. It’s like watching a magic trick where the magician makes the discount disappear into thin air. Abracadabra, discount be gone!

But hold your horses, there’s more exciting news. The SEC, the authority that holds the key to ETF heaven, has decided not to appeal the Grayscale decision on October 13. Bloomberg ETF analyst James Seyffart even referred to spot Bitcoin ETF approvals as a “done deal.” It’s like hearing that your favorite band is finally coming to town after years of waiting. Cue the confetti cannons and get ready to party!

So, what’s next? Well, on October 15, Grayscale announced that the SEC’s 45-day period to seek a rehearing had passed. This means that the court will issue its “final mandate” within seven calendar days. The Grayscale team is on high alert, ready to convert GBTC to an ETF upon SEC approval. It’s like watching a relay race where the baton is about to be passed. Get those popcorn and champagne bottles ready!

We reached out to Grayscale for a comment, but they didn’t respond immediately. Maybe they’re celebrating the shrinking discount with a GBTC-shaped cake and champagne showers. Who can blame them?

So, dear digital asset investors, it’s time to buckle up and get ready for the potential approval of spot Bitcoin ETFs. It’s like waiting for the grand opening of the biggest amusement park in the world. The rollercoasters are about to start, and the thrill of the ride is right around the corner. Will you join the party or be left behind?

Let us know in the comments below. And remember, invest wisely and keep an eye on those discounts!

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