BlackRock’s Bitcoin ETF Move Pushes Grayscale GBTC Volume to $80 Million

Paigambar Mohan Raj
Source: Coinsturn

Grayscale’s Bitcoin Investment Fund’s (GBTC) trade volume has surged by almost 400%. On June 14, GBTC’s trade volume was around $16.1 million. Five days later, the fund’s trade volume has spiked to almost $80 million. The rise is attributed to BlackRock’s application for a Spot Bitcoin (BTC) ETF.

According to Trading View, GBTC’s share price rose above $16 for the first time since May 10. It has increased by over 24% since last Thursday and is currently trading at roughly $15.9. Furthermore, the discount between GBTC and BTC has significantly reduced over the past few days. During the morning, the discount in the share price of GBTC to that of Bitcoin (BTC) fell to as little as 33%. The discount was at 44% about a week ago. Current levels are the lowest it has been since last September. The figure is also lower than the 34% at the beginning of March.

Will BlackRock’s Spot Bitcoin ETF turn the tide?

Grayscale applied to turn its Bitcoin Investment Fund into a spot BTC ETF last year. However, the SEC rejected the firm’s application. Grayscale then went on to sue to SEC for the same.

If BlackRock is successful in obtaining its spot Bitcoin ETF, there would be no reason for Grayscale to not be able to do the same. The firm would finally be able to convert its investment fund into an ETF. The move will finally let the firm remove the discount between the fund’s share price and the price of BTC. Moreover, the SEC might have to pay a fine for having rejected the firm’s application in the first place. Many people believe that the SEC will approve BlackRock’s application, given the firm’s size and value.

However, if BlackRock fails to obtain a spot BTC ETF, it may also take a similar route to Grayscale. A lawsuit between the world’s largest asset manager and the SEC will be quite a tussle.