GBTC shares rose by 57% after the application for a bitcoin ETF from BlackRock
Date: 2023-07-06 Author: Karina Ziganova Categories: BUSINESS
The last time such a low value of the indicator was observed was a year ago.
During this period, digital gold increased in price by 21%, from ~$25,000 to ~$30,300. Shares of the bitcoin trust rose from $13 to $20.46 on increased volumes.
"The market began to count on the approval of BlackRock's application, which led to expectations of satisfying Grayscale's proposal to convert trust shares into an exchange-traded fund," explained Block Research analyst Rebecca Stevens.
Following the financial giant, similar requests were sent by Valkyrie, Fidelity Investments, WisdomTree and Invesco. In the list of applications to the SEC, ARK Invest c 21Shares have priority based on the time of their submission.
Subsequently, the companies listed above sent updated proposals to the agency, taking into account the Commission's criticism of the so-called joint monitoring agreement or the details of this mechanism. The latter was a key addition to BlackRock's application.
According to Bernstein analysts, the regulator will not be able to maintain a negative position in relation to spot ETFs based on the first cryptocurrency for a long time.
In 2021, the SEC approved ProShares and Valkyrie Investments products based on CME bitcoin futures. To date, the Commission has rejected all offers of spot ETFs based on digital gold.
In October 2021, Grayscale sent a request to convert GBTC into an exchange-traded fund. On December 17, the agency postponed a decision on the appeal until February 2022. On June 30, 2022, Grayscale sued the SEC after a negative response.
Recall that in December 2021, the company admitted that the Commission could violate the law on administrative procedures when approving a bitcoin ETF based on futures with the rejection of applications based on its spot version.
