The recent filing by BlackRock for a spot Bitcoin ETF has had a positive impact on the Grayscale Bitcoin Trust (GBTC). The discount between GBTC’s price and the underlying price of Bitcoin has decreased from 44% to 37% within the last week.
A spot ETF differs from futures-based contracts as it directly tracks the price of Bitcoin. This feature makes it a more appealing investment option for many investors, offering direct exposure to the underlying asset.
A spot ETF would track the price of Bitcoin directly, rather than being based on futures contracts. This would make it a more attractive investment for many investors, as it would provide more direct exposure to the underlying asset. The approval of a spot ETF would be a major milestone for the crypto industry, and it would likely lead to a further narrowing of the GBTC discount.
It’s uncertain if the SEC will approve a spot ETF. The BlackRock filing is seen as a positive development. Historically, the SEC has been hesitant to approve Bitcoin ETFs.
Here are some other factors that could help to narrow the GBTC discount:
- A continued increase in the price of Bitcoin.
- Increased institutional investment in Bitcoin.
- The approval of a spot Bitcoin ETF by the SEC.
Palau Offers “Digital Residency” for $248: What Does It Mean for Crypto?
