The United States’ largest institutional Bitcoin product (BTC), is seeing positive developments.
On-chain monitoring resource Coinglass has confirmed that the Grayscale Bitcoin Trust is (GBTC), on track to reach 2022 highs as per data.
Grayscale CEO: “If” not ‘when” for U.S. Bitcoin spot eTF
After a difficult year, GBTC has seen steady Bitcoin price action.
Bitcoin’s fall from November’s all time highs has added to a negative “premium” on GBTC. This meant that its share price traded at a discount relative to the Bitcoin spot prices. The GBTC premium almost hit -30% in January, when that discount was at its greatest.
Since then, a reverse has taken place and the premium as of April 21 is at -21.4% — close to its lowest level for 2022.
GBTC premium vs. assets vs. BTC/USD chart. Source: Coinglass
Grayscale is a premium result of trading sentiment and has been under pressure in the last year, particularly since the approval by the first Bitcoin futures-based, exchange-traded funds.
Grayscale CEO Michael Sonnenshein, along with other industry figures, have voiced their disapproval of Washington regulators. They approve futures ETF products but continue to reject a Bitcoin spot based equivalent.
The Securities and Exchange Commission, which approves candidates on the basis of laws that date back to 1933, has been criticized by the public as much as other countries. Australia won the launch.
The SEC approved a new futures-based ETF earlier this month. This time, it was based on the Securities Act of 1933 rather than the Investment Company Act of 40 previously used. Sonnenshein said this month that it was a significant milestone. This effectively puts the SEC in a corner, with less and fewer excuses to not remove barriers to entry for spot ETF alternatives.
He explained that it was a matter “when” and not “if,” to the network.
“If the SEC cannot look at two similar issues, the spot ETF and futures ETF, with the same lens, it could be grounds for an Administrative Procedure Act violation.”
Matt Hougan is the CEO of Bitwise ETF provider. He stated in the interview that a spot ETF was “what people really want” when it comes to institutional investment products related to Bitcoin.
Cointelegraph reported that futures ETFs have been criticised by commentators who claim that they do not solve the same problems as spot products and can bring new ones.
Nasdaq highlights “surging” institutional demand
A survey conducted by Nasdaq among potential investors in the United States revealed that more than 70% would consider getting exposure to Bitcoin via spot ETFs, should one become available.
Related: Bitcoin spot and futures ETFs – Key differences
“The vast majority” of advisors surveyed plan to allocate to crypto, or increase their current allocation, Jake Rapaport (Nadaq’s head for digital asset index research), stated in a press release dated April 11.
Advisors will continue to look for institutional solutions to the crypto question, which is dominating client conversations.
A survey found that 86% advisors who have already invested in crypto plan to increase their exposure over the next year.
GBTC held 640,930 BTC as of April 21st, worth $26.9 Billion at the time.
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