On Monday, the oldest cryptocurrency, Bitcoin, crossed above $28,000 as the journey to have the first spot exchange-traded fund (ETF) in the US took a bullish turn. Data on CoinGecko shows BTC trading at $28,228 as of this writing.
A primary driver of the latest rally has been a major update in the case involving Grayscale and the United States Securities and Exchange Commission (SEC). Over the weekend, several reports indicated that the SEC would not appeal the court ruling delivered in August demanding a review of the Commission’s decision to block Grayscale’s application for Bitcoin spot ETF.
At the time, the court said the Securities and Exchange Commission had failed to provide sufficient explanation for rejecting the asset manager’s Bitcoin ETF filing. Grayscale has tried to convert its Bitcoin Fund (GBTC) to spot ETF over the years, but the SEC has blocked each of the firm’s attempts.
An Overview of Grayscale GBTC Performance
Unlike a conventional ETF, GBTC doesn’t let investors redeem for the tracked underlying asset. This has caused a huge price variance between Bitcoin and GBTC since investors are unable to engage in arbitrage trading.
From January 2022 to August 2023, GBTC had been trading at a discount of more than 20%. At one point, it reached 48%. However, the August court victory has reduced the discount to 15.5% for the first time since December 2021, according to Ycharts’ data.
Grayscale is among the many asset managers that have filed for Bitcoin spot ETFs with the SEC. Others include Valkyrie, ProShares, BlackRock, and VanEck.
Price Analysis of Other Cryptocurrencies
Besides Bitcoin, a good number of the top ten cryptocurrencies have also recorded price growth since Monday. Solana is the top gainer among the leading altcoins after rising by more than 8%. It now trades at $24.1. Still, the current price is 91.2% lower than the token’s all-time high ($259.4) set almost two years ago.
Solana rally is fueled by reports that the now-collapsed crypto exchange FTX has staked its massive SOL holding worth $136 million. Earlier, many crypto users thought the exchange would sell the tokens to make its customers whole.
Another token that has rallied since yesterday is BNB. It is up 3.4% to trade at $213 as of this writing. The bullish move comes after Binance announced the burn of over 1.9 million BNB tokens.
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