There is a renewed hope that the US Securities and Exchange Commission (SEC) may finally approve a spot Bitcoin ETF.
Grayscale’s Bitcoin Investment Trust (GBTC) is currently enjoying some attention from investors, and its trading volume is a testament to this fact. This follows after GBTC’s trading volume spiked by over 400% within the last week.
As of June 14, the daily trading volume of GBTC was still standing at $16.1 million. However, in just 5 days, that volume surged massively to about $80 million.
Why Is GBTC Trading So Much?
It might be interesting to note that asset management firm BlackRock filed for a spot Bitcoin ETF on June 15. That has undoubtedly brought renewed hope that the US Securities and Exchange Commission (SEC) may finally approve one.
If that is the case, then Grayscale itself can be optimistic about its proposal to convert GBTC into a spot bitcoin ETF. Although Grayscale, like many others, has had its proposal rejected by the SEC up until this moment. The SEC has always cited that its disapproval of spot Bitcoin ETF applications thus far hinges on the fear of market manipulation, among other things. Grayscale, however, has sued the regulator since the last rejection and has filed a suit against the SEC.
Furthermore, unconfirmed reports filtered out earlier this week that claims Fidelity might be planning to acquire Grayscale. If that also turns out to be true, then that helps GBTC’s cause with the SEC, especially with regard to Fidelity’s repute as an old, traditional firm.
Whatever might be the case, there is a general sense of optimism around BlackRock being successful in its bid for a spot Bitcoin ETF. And when that happens, it is expected to pave the way for Grayscale to get its non-redeemable trust shares changed, too.
This is why GBTC is currently exchanging hands at such a massive rate.
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this.
He’s a reader, a researcher, an astute speaker, and also a budding entrepreneur.
Away from crypto however, Mayowa’s fancied distractions include soccer or discussing world politics.
