Grayscale's Bitcoin Trust Shares Surge Amid ETF Optimism and Acquisition Rumors | June 21, 2023

Grayscale's Bitcoin Trust #GBTC shares exhibited a promising surge on June 20, increasing by 11% and reaching $16.85, thereby narrowing the discount to its net asset value to 33.45%, the highest point since the year's onset. The surge in optimism around GBTC shares appears tied to BlackRock's application for a Bitcoin spot ETF, which is reported to have ignited a rally in GBTC shares, enhancing their value by over 25%. Additionally, the rumor mill suggests that Fidelity Investment, one of the world's leading asset managers, might be mulling over the prospect of acquiring Grayscale.

Despite numerous attempts by Grayscale, and several other companies, to establish a spot Bitcoin ETF, they have been met with consistent resistance from the U.S. Securities and Exchange Commission (SEC). The SEC cites non-compliance with certain sections of the Securities Exchange Act, and the inability to thwart potential fraud and market manipulation or safeguard investors and public interests. In response to these rejections, Grayscale has sued the SEC, asserting that a spot ETF doesn't differ fundamentally from a futures ETF — the latter having been previously approved by the SEC. According to Grayscale, both ETF types, being reliant on Bitcoin's price, inherently pose equivalent risk levels, regardless of where they are traded. #GBTC #BTC #MarketUpdate #News