The discount on GBTC shares continued to shrink on Tuesday. This is due to optimism that a bitcoin cash exchange-traded fund (ETF) may emerge in the US. Grayscale's GBTC shares posted a 12% discount to the fund's net asset value (NAV) on Tuesday. This is the closest level to NAV since December 2021, according to TradingView data.
Hopes of a Bitcoin cash ETF revive investors
On Friday, the SEC did not contest its legal defeat of last August. It concerns Grayscale's application to convert the GBTC into a cash ETF. It raises hopes of approval of the application among investors. Grayscale is one of a number of asset managers, including BlackRock, Fidelity and WisdomTree, that have applied to the SEC for approval to create bitcoin cash ETFs. GBTC is currently the world's largest crypto-currency fund, with $16.7 billion in assets under management…
Influence on the crypto-currency market
- Reducing the GBTC discount could have a positive effect on the crypto-currency market as a whole.
- Investors are paying close attention to new regulations and financial products linked to crypto-currencies.
- The approval of a bitcoin cash ETF could encourage traditional asset managers to further integrate crypto-currencies into their portfolios.
Conclusion
The growing adoption of digital assets and the possibility of an ETF at asset manager Grayscale underscore the changing financial landscape. GBTC's discount to Grayscale is at its lowest since 2021. As a result, investors are optimistic about the potential success of bitcoin ETFs in the US. If approved by the SEC, this development could mark a milestone in the traditional financial sector.
