The long-discounted price of the Grayscale Bitcoin Trust (GBTC) is catching up to its net asset value (NAV) amid potentially positive legal developments.
GBTC is trading at a -15.87% discount to its net asset value on October 13, compared to around 21% at the start of the month, more than 43% in June and almost 50% in December and January, according to Ycharten .
Discount to NAV is a measure that tracks the difference between the fund’s current value and its actual value.
The shrinking discount came as news emerged in recent days that the US Securities and Exchange Commission (SEC) does not plan to appeal a court ruling requiring the regulator to reject Grayscale’s bid to convert GBTC Putting in a spot Bitcoin (BTC) exchange traded fund to reconsider. ETF).
Last year, the digital asset management giant sued the SEC, immediately after the regulator rejected the company’s bid to turn its flagship product into an ETF.
A federal judge ruled in August that the SEC must reconsider Grayscale’s filing to avoid arbitrariness and inconsistency.
Citing a source familiar with the matter, Reuters reported last week that the SEC has no plans to appeal the judge’s decision.
In a statement to Fox Business journalist Eleanor Terrett, Grayscale also said confirmed that development.
“The Federal Rules of Appellate Procedure’s 45-day period to request rehearing has now expired. The Court will now issue its final mandate within seven calendar days. The Grayscale team remains operationally ready to convert GBTC into an ETF upon SEC approval, and we look forward to sharing more information as soon as possible.”
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Generated image: Midjourney