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- The chance of a spot Bitcoin ETF gaining approval by January 2024 has increased to 90%, according to Bloomberg analysts.
- This decision has positively impacted Bitcoin’s price, which surged to $28,000. On-chain data shows this price jump is linked to the movement of long-inactive coins, signifying potential changes in price direction.
Over the last weekend on October 14, a Reuters report suggested that the U.S. Securities and Exchange Commission (SEC) has decided not to challenge the court ruling of converting Grayscale’s GBTC product to s spot Bitcoin ETF.
The Bitcoin community is rejoicing in the development with the BTC price shooting all the way to $28,000 earlier today. The SEC’s decision not to pursue an appeal appears to pave the way for the agency to review Grayscale’s application.
According to Bloomberg’s senior ETF analyst James Seyffart, talks between Grayscale and the SEC are scheduled to begin next week, and a new SEC response is anticipated within the next two weeks. Additionally, Seyffart noted that it’s improbable that the US SEC will appeal the court’s ruling to the Supreme Court.
1. Done deal I guess if this is accurate. No en banc application
2. No. I do not think they will appeal to the Supreme Court either.
3. Dialogue between Grayscale and SEC should begin next week. Hoping for more info on next steps sometime next week or week after? https://t.co/2EayzqeKGq
— James Seyffart (@JSeyff) October 13, 2023
The analyst has further stated that the chances of a spot Bitcoin ETF approval by January 2024, have increased to 90%. On October 15, Grayscale issued a statement, pointing out that the SEC’s 45-day window to request a rehearing has lapsed, and thus, the court is set to release its “final mandate” in the next seven calendar days.
The Grayscale team is fully prepared to transition GBTC into an ETF once it secures approval from the SEC, and they anticipate providing more details as soon as possible, as reported.
Bitcoin Price Action
Over the last weekend, the Bitcoin network witnessed strong activity amid these developments. The whale activity on the Bitcoin blockchain network has also shot up in this regard.
#Bitcoin whales bought around 117 $BTC in the past 48 hours, worth roughly $3.2 million. pic.twitter.com/Aoshmy0r4D
— Ali (@ali_charts) October 15, 2023
On-chain data provider Santiment reported that Bitcoin’s return to the $28,000 price level is linked to the activation of long-inactive coins that had remained dormant. This movement represents the most substantial transfer of idle Bitcoin (BTC) between wallets since July, and it is highlighted by pronounced spikes in our Age Consumed metric, suggesting the possibility of changes in price direction. However, amid the concerns of any major correction, Bitcoin long-term holders have been in a state of fear.
Grayscale GBTC Trust discount Drops to 16%
Grayscale’s Bitcoin investment vehicle, Grayscale Bitcoin Trust (GBTC), is experiencing its lowest discount in nearly two years, coinciding with the progress of spot Bitcoin exchange-traded funds (ETFs) toward potential approval in the United States.
🚀 Breaking News 🚀 GBTC Discount Hits a Remarkable 16%! 📉#Grayscale and the #SEC gear up for a conversation on GBTC's transformation into a spot #BitcoinETF. With the SEC stepping back, the odds of a US spot #BTC ETF approval soar to 90% by Jan 2024. 🗓️ pic.twitter.com/xbN2bQ57U1
— Collin Brown (@CollinBrownXRP) October 16, 2023
Recent data from YCharts reveals that GBTC’s discount to Bitcoin’s net asset value (NAV) has contracted to 15.87% as of October 13. The data indicates that GBTC’s discount began to shrink when BlackRock and several other financial institutions filed spot Bitcoin ETF applications in mid-June. During this period, the discount decreased from 44% on June 15 to 26.7% by July 5, and it has continued to narrow since then.
The last occasion when GBTC’s discount reached a comparable level was in early December 2021, merely a month following BTC’s record-breaking price of $69,000 on November 10, 2021.
Notable Bitcoin proponent Oliver Velez suggests that the market is factoring in the potential approval of spot Bitcoin ETFs by the end of the year. On the other hand, some analysts, like cryptocurrency investor Lyle Pratt, anticipate that GBTC’s discount will steadily diminish over the next one to two weeks as spot Bitcoin ETFs approach regulatory approval.
