Claim BonusGrayscale Bitcoin Trust (GBTC) Trading Volume Shoots, Rallies 25% In A Week
Ever since the world’s largest asset manager BlackRock filed for a Bitcoin ETF last week, trading activity has shot up for the Grayscale Bitcoin Trust (GBTC).
On Tuesday, June 20, the share price of Grayscale Bitcoin Trust (NASDAQ: GBTC) shot up by a staggering 11.40% ending the trading at $16.85. The surge in the GBTC share price came as it recorded the highest trading volume of $10.24 million, since November 22 last year.
Citing data from CryptoQuant, popular crypto journalist Colin Wu reported: “GBTC has rallied more than 25% since BlackRock filed for a Bitcoin ETF like GBTC application. CryptoQuant shows that the current GBTC premium is -34.19%, the second highest point this year”.
The recent activity surge in GBTC comes as some of the top financial players have been applying for a spot-Bitcoin ETF. As we know, Grayscale has been one of the forerunners in the race of bringing a spot Bitcoin ETF to the market.
BlackRock submitted their application at the same time that Grayscale Investments is having a legal dispute with the SEC to change the Grayscale Bitcoin Trust into an ETF backed by physical assets. The discount between the trust’s value and its net asset value has significantly reduced, as there is speculation that BlackRock’s action might strengthen Grayscale’s argument.
Will BlackRock’s Market Entry Impact Grayscale?
Grayscale is one of the world’s largest digital asset managers, however, the entry of giants like BlackRock could possibly threaten its stronghold in the market. Asset manager Grayscale has been suing the US SEC in order to upgrade its trust to a spot Bitcoin ETF.
One of the biggest hurdles to Grayscale could be the hefty fee that it charges to traders. According to data from The Block Research, the company generated over $230 million from its main GBTC and ETHE products since the start of the year. However, the annual fees of 2.0% and 2.5% that the company charges for managing those assets may decrease if BlackRock is able to launch a competing product successfully, as suggested by James Seyffart from Bloomberg Intelligence.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Bitget Unveils Stock Futures Championship, Integrating Tokenized TradFi for Crypto Traders
- Trump Tariffs: France Pushes Back, Pledges Retaliation Over US Trade Threats
- Breaking: Nasdaq Files with US SEC to Remove Bitcoin and Ethereum ETFs Restrictions
- XRP Treasury Evernorth Partners With AI Firm to Boost Holdings Yield on XRPL
- Top 5 Reasons Crypto Prices Are Up Today: BTC, ETH, XRP, ADA
- What’s Next for Bitcoin Price as US Senate Delays CLARITY Act Again?
- Ethereum Price Prediction as Trump Signals Crypto Market Bill Signing soon
- Bitcoin Price Prediction Ahead of Key US Inflation and GDP Data
- XRP Price Forecast as Binance Officially Lists Ripples’s $RLUSD Stablecoin
- Dogecoin, Shiba Inu, and PEPE Predictions as Bitcoin Price Drops Below $90k
- Is Pi Network Price Going Through a Tough January?
