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GBTC shares rise to one-year high, discount falls to 30%




Grayscale Bitcoin Trust’s (GBTC) share price rose to a one-year high on Tuesday on a report investment asset manager Fidelity Investments is preparing to follow BlackRock’s filing for a spot bitcoin (BTC) exchange-traded fund (ETF) with its own, revamped one. optimism about converting the trust into an ETF.

GBTC closed at $19.47 on Tuesday afternoon, gaining 7.1% on the day. This was the highest closing price since last June, according to TradingView data. Meanwhile, BTC traded mostly flat, except for a brief surge to $31,000 following the Fidelity news.

The discount to GBTC̵[ads1]7;s share price relative to net asset value — a widely followed metric in the digital asset space — fell to 30%, according to a CoinDesk calculation. The last time GBTC closed the day around this level was last September, according to historical data from Ycharts.

Tuesday’s price rally extended GBTC’s recent rally, which was initially spurred by BlackRock’s June 15 filing, and continued as financial giants Invesco and WisdomTree reapplied to offer spot BTC ETFs. GBTC has gained almost 50% in less than two weeks since BlackRock’s application. BlackRock is the world’s largest asset manager with $9.1 trillion in AUM.

Investors are betting on GBTC because of the “BlackRock file and the optimism that [the firm] may have cracked the code on an ETF, raising hopes that Grayscale could also convert and remove the discount, Doug Schwenk, CEO of crypto data provider Digital Asset Research, said in a note to CoinDesk.

Traders are also increasingly optimistic about the outcome of a lawsuit between Grayscale and the US Securities and Exchange Commission (SEC), Schwenk said. The firm sued the agency earlier this year to reject its application to convert the closed-end GBTC fund into an ETF that would allow redemptions and close the gap between the share price traded on secondary markets and the net value per share of the fund’s BTC holdings. .

“A positive result for Grayscale would lead to greater potential for listing as an ETF and remove the discount,” he added. “Of course, some believe that BlackRock’s filing is also a view of the potential for Grayscale to succeed in their lawsuit.”



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