- The discount zone narrowed to 29.3%
- This is the best value from July of last year
- We previously reported that trading volume on this position had quadrupled
In mid-June, a subsidiary of BlackRock filed for registration of a spot bitcoin ETF. This set off a chain reaction, as a result of which the BTC exchange rate, as well as the value of derivative products from the asset increased significantly. In particular, the GBTC trust from Grayscale was affected.
We previously reported that trading volume on this position quadrupled. The figure rose from $16.1 million to $80 million in just a few days amid news of an application from BlackRock.
Experts explained that approval of the new exchange product would provide Grayscale a “loophole” in the lawsuit with the SEC. Recall that the company had previously filed an application to convert the trust to ETF, but was rejected.
While the rate of GBTC continues to rise. In less than a month, the trust’s share price rose more than 39%, from $13.26 to $20.14 at the time of this writing. The trend movement is clearly visible on the chart:
BTC rose in value by more than 21% over the same period. But that’s not all.. For the first time since last July, the discount zone (the difference in the market price of shares to the bitcoin rate) narrowed to 30%. The trust is currently trading at a “drawdown” of 29.3%.
For comparison, before BlackRock’s filing, the discount zone was 41.7%. The trust traded at a premium until 2021. Grayscale’s efforts to convert it into an ETF were precisely aimed at minimizing losses and narrowing the discount zone. BTC, on the other hand – only by 83.7%. In case BlackRock’s application is approved, further narrowing of the discount zone cannot be ruled out.