Grayscale Bitcoin Trust trading volume surges fivefold

Trading volume GBTC from Grayscale Investments jumped 400%, from $16.1 million to $80 million. The market reacted to BlackRock filing with the SEC for creating a bitcoin-ETF.

“We see positive expectations regarding the approval of BlackRock’s initiative. This could ease the situation for Grayscale in its bid to convert the product into an exchange-traded fund,” — commented in The Block.

In October 2021, Grayscale sent the corresponding application. On December 17, the SEC delayed decision on the petition, and in February 2022 again postponed the date on this matter. On June 30, Grayscale filed suit against the regulator after a negative response.

Bloomberg analyst James Seyffart saw in the possible approval of BlackRock’s filing a threat to GBTC’s valuation and potential pressure on the product’s fees.

“Moreover, if the bitcoin trust is converted into an ETF, investors could start redeeming funds,” he added.

According to The Block, since the start of 2023 Grayscale has earned $230 million from crypto ETFs. The annual management fee for products is 2-2.5%. Their total AUM exceeds $23.5 billion, including GBTC — $17.5 billion.

In July 2022, the Wall Street Journal accused SEC Chair Gary Gensler of a “confusing” approach to approving a spot Bitcoin ETF. Journalists described Grayscale’s chances of winning the lawsuit against the agency as high.

Spot Bitcoin ETFs have gained regulatory approvals from Canada, Canada, Brazil, Australia, and the Netherlands.