It has been widely reported that the Securities and Exchange Commission (SEC) has decided not to appeal a decision by the courts that reflects favorably on Grayscale’s push to launch a Bitcoin ETF. Grayscale currently lists a Bitcoin Trust on OTC Markets, along with other crypto funds, but has long desired an exchange-traded fund that may entice more investors to participate in BTC.
Fineqia International (CSE:FNQ) analyst Matteo Greco says the SEC decision is helping Bitcoin to catch a bid now trading at over $28,000 – which is an over 2% increase in the past week. Greco states:
“BTC continues to exhibit strength compared to other digital assets, with its dominance increasing by 0.5% for the third consecutive week since the date of this publication. The Bitcoin dominance, which measures the relationship between Bitcoin’s market capitalisation and the total digital asset market capitalisation, presently stands at 51.4%, an increase from 50.9% a week ago, 50.4% two weeks ago, and 49.9% three weeks ago.”
Greco notes that the SEC had 45 days to appeal the court decision from August, and the time has now run out.
“This news was well-received by investors, notably reflected in the narrowing discount of the Grayscale Bitcoin Trust (GBTC), which currently sits at 15.9%. This is the lowest level recorded since December 2021. The discount narrowing trend commenced in mid-June 2023 when BlackRock filed for its Bitcoin Spot ETF. Back then, the GBTC discount was approximately 43%.”
Greco adds that GBTC’s discount to spot prices has narrowed recently due to the court decision and a growing expectation that an ETF may happen sooner rather than later. Grayscale is not alone in its effort to launch a crypto ETC; others include Blackrock and ARK, as current sentiment believes the SEC will not be able to hold out for much longer.
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