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The discount on Grayscale Bitcoin Trust (GBTC) has fallen to its lowest level this year, currently at 16.58% as of October 12, according to data from Coinglass.
This reduction in discount is closely associated with the upcoming deadline for the U.S. Securities and Exchange Commission (SEC) to submit an appeal regarding its prior defeat against the asset management company. In August, a U.S. court mandated the financial regulator to reassess Grayscale’s request to transform its BTC trust into a spot exchange-traded fund (ETF).
GBTC, the largest investment vehicle for BTC, has seen a significant improvement in its outlook following BlackRock’s submission for a spot-based Bitcoin ETF to the SEC in June. The discount decreased to below 20% for the first time in two years after the Court’s pivotal ruling in favor of Grayscale.
GBTC Discount. (Source: Coinglass)
Will the SEC appeal Grayscale’s victory?
As the deadline for an SEC appeal nears, market analysts speculate that the regulatory agency may not challenge the Court’s ruling.
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Nate Geraci, the President of ETFStore, expressed that he does not anticipate the SEC will appeal the court decision. Geraci noted that if the SEC refrains from appealing the ruling, it would accelerate the approval process for spot-Bitcoin ETFs.
This perspective aligns with that of Bloomberg’s Senior ETF analyst, Eric Balchunas, who believes that an “appeal is a longshot.” However, he cautioned, “There’s always a chance of something else happening.”
In the meantime, both Geraci and Balchunas are of the opinion that the regulator will authorize a spot BTC ETF by the following year.
Likewise, Matt Klein, a portfolio strategist at Nascent, suggested that while the SEC may not contest Grayscale’s victory, the regulator could postpone its approval of the firm’s ETF application for several months.
Klein indicated that the regulator’s delay strategies might be part of a larger plan to enable other spot-Bitcoin ETF providers, such as Blackrock and Ark, to launch simultaneously.
The post Will SEC file appeal by deadline as Grayscale Bitcoin Trust discount hits yearly low? appeared first on CryptoSlate.
