Global fintech and funding innovation ecosystem

BlackRock’s Bitcoin ETF Filing Fuels Bullish Momentum for Grayscale Bitcoin Trust

Decrypt | Pedro Solimano | Jun 19, 2023

Grayscale 1 - BlackRock's Bitcoin ETF Filing Fuels Bullish Momentum for Grayscale Bitcoin Trust

The recent filing by BlackRock, the world's largest asset manager, to launch a Bitcoin spot price exchange-traded fund (ETF) has reignited hopes for the first U.S. Bitcoin spot ETF. This news has fuelled investor sentiment and given GBTC a significant boost, bringing it close to its 2023 highs​​.​.

  • Experts believe that if BlackRock's ETF gets approved, GBTC could be the real winner.
    • This is because BlackRock's success could pave the way for GBTC's conversion and resolution of its 40%+ discount on top of industry growth.
    • Given BlackRock's track record and unique approach, including a redeemable trust structure, many believe that the firm's offering stands a good chance of receiving U.S. regulatory approval​.

See:  Majority of Professional Investors Yet to Embrace Crypto, But Nearly Half Might Enter Through ETPs

  • BlackRock's move is not without controversy, with some questioning whether it is indeed an ETF.
    • While some argue that it will merely be a similar trust to GBTC, others point out that this is an ETF as a redeemable trust, unlike GBTC.
    • This nuanced view holds that the trust component enables BlackRock to list shares that represent a certain amount of Bitcoin, as it does not process units of Bitcoin directly at a clearinghouse​.
    • Regardless of the debate, investor interest in GBTC is on the rise. For example, hedge fund North Rock Digital has been consistently accumulating more Grayscale trusts over the past several weeks. They believe that the upside potential if Grayscale wins is significant, and the downside if they lose is minimal. This filing could be a catalyst to see them tighten to more rational levels​​.
    • BlackRock's potential Bitcoin ETF have stirred up the crypto market, leading to an uptick in investor sentiment and GBTC shares.

Continue to the full article --> here


NCFA Jan 2018 resize - BlackRock's Bitcoin ETF Filing Fuels Bullish Momentum for Grayscale Bitcoin TrustThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - BlackRock's Bitcoin ETF Filing Fuels Bullish Momentum for Grayscale Bitcoin TrustFF Logo 400 v3 - BlackRock's Bitcoin ETF Filing Fuels Bullish Momentum for Grayscale Bitcoin Trustcommunity social impact - BlackRock's Bitcoin ETF Filing Fuels Bullish Momentum for Grayscale Bitcoin Trust

Support NCFA by Following us on Twitter!







NCFA Sign up for our newsletter - BlackRock's Bitcoin ETF Filing Fuels Bullish Momentum for Grayscale Bitcoin Trust




 

Leave a Reply

Your email address will not be published. Required fields are marked *

20 + twenty =