Grayscale Bitcoin Trust (GBTC): The attorneys representing the U.S. Securities and Exchange Commission’s (SEC) in the Grayscale lawsuit faced tough questions from the judges. The primary discussion on the opening day of arguments was centered around how the SEC differentiates futures Bitcoin ETF from spot Bitcoin ETF. The case concerns Grayscale’s challenge to the SEC’s rejection of conversion of GBTC into and ETF. Interestingly, the development pushed GBTC share price to its highest level in 2023 so far.
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GBTC Discount Closes Further
More importantly, the GBTC discount has narrowed down to around 35% with the renewed energy among traders. According to TradeBlock data, the GBTC discount is currently -37.97%, compared to the -42% discount on Monday. In what could be a sign of confidence in Grayscale‘s case in the lawsuit, the share price was up by around 5% on Monday, in anticipation of positive outcome for the company. Overall, it has been a good start for Grayscale in its pursuit of gaining an approval for the first ever spot Bitcoin ETF. Popular crypto trader The Wolf Of All Streets said it is a good start for Grayscale with GBTC’s rally and the judges’ aggressive questioning of the SEC’s actions.
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Meanwhile, the crypto market displayed no signs of volatility, against market expectation, as Fed Chair Jerome Powell delivered a fairly bearish outlook on the interest rates for the months to come. That the Bitcoin price is almost flat compared to 24 hours ago speaks it all.