BlackRock’s Bitcoin ETF Sparks 12% Surge in Grayscale’s GBTC

• BlackRock sent a spot Bitcoin ETF application to the U.S. Securities and Exchange Commission (SEC)
• This caused Grayscale’s Bitcoin Trust (GBTC) to surge more than 12% on Friday
• Grayscale CEO Michael Sonnenshein highlighted the importance of converting GBTC into a spot Bitcoin ETF as it would allow the trust to trade near par with the Bitcoin spot price, adding billions of dollars to investors’ positions as the discount evaporates

Blackrock’s Application for a Spot Bitcoin ETF

The digital asset management titan Grayscale is seeing signs of life following BlackRock’s filing for an exchange-traded fund (ETF) designed to track the performance of Bitcoin. The $10 trillion investment firm submitted their application to the U.S. Securities and Exchange Commission (SEC) recently, causing Grayscale’s Bitcoin Trust (GBTC) to surge more than 12% on Friday.

Grayscale’s GBTC Discount Shrinks

Previously, GBTC was trading at a steep discount to its net asset value (NAV), but this rally has allowed the Bitcoin trust to close that gap from 44.03% on June 13th down to 36.61% on June 16th. Adam Cochran believes that if approved, GBTC will be one of the major winners due to institutional investors being able to access BTC through it in large quantities without any premium or discount attached.

Converting GBTC into a Spot Bitcoin ETF

Grayscale CEO Michael Sonnenshein believes that converting GBTC into an ETF will benefit investors greatly as it would no longer trade at a discount or premium and there would be an embedded “arbitrage mechanism” in place that could add billions of dollars back into investor pockets overnight by bringing up its NAV back up near par with the bitcoin spot price.

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