Share this article
Grayscale 'GBTC Discount' Narrows to Near 2-Year Low as SEC Misses ETF Appeal Window
The narrowing of the discount likely represents increased likelihood that Grayscale will be able to convert its close-ended bitcoin trust into a spot-based exchange-traded fund.
Updated Oct 16, 2023, 3:46 p.m. Published Oct 16, 2023, 6:42 a.m.
The widely tracked crypto market indicator "GBTC discount" narrowed to its lowest in 22 months on Friday, signaling increased optimism that Grayscale will be able to convert its close-ended bitcoin trust into an open-ended spot-based exchange-traded fund (ETF).
On Friday, shares in Grayscale Bitcoin Trust (GBTC) traded at a discount of 15.87% to the trust's net asset value, reaching the level last seen in December 2021, according to YCharts. The discount has been steadily narrowing since reaching a record low of nearly 50% during the height of the bear market in December last year.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The latest improvement came as the U.S. Securities and Exchange Commission (SEC) decided not to appeal against the D.C. Circuit Court of Appeals' August verdict to set aside the regulator's decision to reject Grayscale's attempts to convert its trust into an ETF. The SEC had until Friday midnight to challenge the decision.
Grasycale and CoinDesk are part of the Digital Currency Group.
The SEC could now come up with new reasons to reject Grayscale's bid to cover its trust into an ETF or request an en banc appeal. That said, the probability appears low, considering the regulator has been actively engaging with other spot-ETF applications.
"As far as I know, the SEC did not appeal, which means it now has to reconsider its ruling. It could deny again for different reasons - but the agency is reportedly engaging with other potential issuers, which is unusual. It is starting to feel like it is getting ready to let them list," Noelle Acheson, author of the popular Crypto Is Macro Now newsletter, said in the weekend edition.
Nate Geraci, president of the ETF Store, voiced a similar opinion on X last week, saying the lack of appeal would mean a potential spot ETF launch in January 2024, with Grayscale probably taking the lead over other issuers.
On June 15, the world’s largest fund manager and traditional finance heavyweight, BlackRock filed for a spot bitcoin ETF with the SEC, with Fidelity, Invesco, Valkyrie Investments, WisdomTree, and VanEck following BlackRock's lead in the subsequent days.
A potential approval of a spot-based ETF is widely expected to unlock floodgates to billions of dollars in mainstream money, although Coinbase Institutional expects the flows to materialize over time.
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Japan’s Higher Rates Puts Bitcoin in the Crosshairs of a Yen Carry Unwind
A stronger yen typically coincides with de-risking across macro portfolios, and that dynamic could tighten liquidity conditions that recently helped bitcoin rebound from November’s lows.
What to know:
- The Bank of Japan is expected to raise interest rates to 0.75% at its December meeting, the highest since 1995, affecting global markets including cryptocurrencies.
- A stronger yen could lead to de-risking in macro portfolios, impacting liquidity conditions that have supported bitcoin's recent recovery.
- Governor Kazuo Ueda indicated a high probability of a rate hike, with officials prepared for further tightening if their economic outlook supports it.
Top Stories
