Bitcoin ETF Trades $1.5B with GBTC ‘Discount’ Matching $69K BTC Price

Bitcoin institutional investment vehicles are experiencing a significant increase in volume as the anticipation of regulatory changes in the United States grows. Data from Bloomberg and other sources reveal that Bitcoin exchange-traded funds (ETFs) and other investment options are seeing record weekly inflows.

The possibility of a Bitcoin spot price-based ETF being permitted in the U.S. has not only affected the price of BTC but has also had a positive impact on the entire ecosystem. Along with exchanges and mining firms, institutional investment options that have faced challenges in the past are also seeing a resurgence in demand.

According to Bloomberg senior ETF analyst Eric Balchunas, two well-known investment options experienced notable trading volume in the week leading up to October 27th. One of them is the ProShares Bitcoin Strategy ETF (BITO), which became the first futures-based ETF to receive approval in the U.S. in 2021. Balchunas noted that BITO traded $1.7 billion in volume last week, the second-highest since its initial week of trading.

Another investment option that saw significant trading volume is the Grayscale Bitcoin Trust (GBTC), which reached $800 million in volume. This increase in volume helped reduce GBTC’s discount to the Bitcoin spot price to its lowest level in two years.

The data caught the attention of others in the crypto industry, with William Clemente, co-founder of crypto research firm Reflexivity, describing ETF trading as being “back in full steam.”

GBTC has been making a remarkable comeback in recent months, even before BTC/USD experienced a 15% gain last week. Legal victories in the journey to transform GBTC into a spot ETF have played a role in this resurgence. Grayscale’s product now trades with an implied share price that is just 13.1% below the BTC spot price, the lowest since November 2021 when Bitcoin reached its all-time high.

The narrowing of the GBTC discount has led some to speculate that traditional finance may have insight into future developments. Mister Crypto, a popular Bitcoin and altcoin trader, responded to the narrowing discount by suggesting that “maybe TradFi knows something we don’t know yet.”

Despite the positive developments, investment management firm ARK Invest has reduced its holdings in GBTC as the share price continues to rise. ARK Invest is also planning to launch a Bitcoin spot ETF. However, GBTC currently accounts for 10.24% of its ARK Next Generation Internet ETF, marking its first change since November 2022.

It is important to note that this article does not provide investment advice or recommendations. Investors should conduct their own research and assess the risks involved before making any investment decisions.

Overall, the excitement surrounding possible regulatory changes in the United States has spurred significant volume growth in Bitcoin institutional investment vehicles. ETFs and other investment options are seeing record inflows, indicating a growing interest in the cryptocurrency market.

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