Grayscale CEO Michael Sonnenshein appeared to imply that the firm’s Bitcoin trust product will soon be approved for conversion into a spot Bitcoin exchange-traded fund (ETF) when he tweeted, “It’s been a ten-year dress rehearsal.” This morning, we’re all set for the major event.
The Grayscale Bitcoin Trust (GBTC) was established in September 2013, almost over ten years ago.
Interest in various prospective spot Bitcoin ETF products has been fueling a surge in crypto values, and the prospect of a successful conversion for GBTC, in particular, appears to be bolstering that product.
As of this writing, GBTC’s discount to its net asset value (NAV) is -10.35%, the lowest level since July 2021.
While the SEC might still reject Grayscale’s application, Decrypt noted that it would need to discover new reasons to do so, as its prior reasoning — that the futures Bitcoin market is not intimately tied enough to the spot market — was considered insufficient.
Eric Balchunas, a senior ETF analyst at Bloomberg who has been a key voice in the debate for Bitcoin ETF certification, reacted to Sonnenshein by stating, “It’s the final countdown.”
In this context, The GBTC discount has been slowly narrowing this year as the company looks to move closer to converting to a spot ETF. With the SEC running out of legitimate grounds to refuse such a product, Sonnenshein may have reason to believe the main event is not far away.