• Since July 2021, shares of Grayscale Bitcoin Trust rose the highest on Tuesday.
  • There is now just a roughly 18% discount between GBTC and the price of Bitcoin.

Grayscale’s recent win against the United States SEC in its fight to convert its Grayscale Bitcoin Trust (GBTC) to a spot Bitcoin ETF was significant. Since July 2021, shares of Grayscale Bitcoin Trust rose the highest on Tuesday.

August 29 saw a 17% increase in the price of GBTC shares, trading at $20.56. There is now just a roughly 18% discount between GBTC and the price of Bitcoin. When compared to the roughly 50% price discount in December, this is a huge improvement.

All Eyes on SEC

Due to its current closed-end structure, the Grayscale Bitcoin Trust (GBTC) may experience large deviations from its NAV. There has been considerable anticipation that the discount may decrease as a result of the ETF conversion since the ETF structure allows for the issuance and redemption of shares in line with NAV.

Bloomberg’s data shows that the number of GBTC shares traded has increased significantly, hitting its highest level in over a year with over 19 million shares changing hands.

Although Grayscale’s victory is a huge step forward for the cryptocurrency industry, some experts predict that the SEC will take further action to prevent Grayscale from transforming its GBTC product into a spot Bitcoin ETF.

In spite of the court’s rejection of the SEC’s arguments against spot Bitcoin ETFs, some experts believe that the regulatory body will now focus on crypto custodians due to their poor security practices. Post the ruling, the crypto market rallied with Bitcoin price hitting the $28,000 mark.

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