The biggest story in the cryptocurrency market right now is the SEC's decision not to contest the court ruling that allows Grayscale to launch a Bitcoin spot Exchange Traded Fund.
Bitcoin has not seen much of a price reaction to the news, posing the question of what happens next to the price of Bitcoin and indeed what are the potential consequences of this decision.
Grayscale Bitcoin Trust or GBTC has seen an uptick or improvement in terms of its previous discount to NAV. The net asset value (NAV) serves as a financial barometer, indicating the per-share value of a fund’s underlying assets.
In layman's terms, the NAV represents the value of BTC it holds, adjusted for liabilities, and divided by its outstanding shares. Basically, it’s a measure of what each GBTC share should theoretically be worth based on Bitcoin’s market value.
The shrinking discount implies a potential positive shift in GBTC’s market sentiment. For investors, buying GBTC at a discount might seem like a lucrative deal, as they gain exposure to BTC at a reduced price.
Source: Twitter.com
Also, just to keep on the point of market reaction, we have seen Bloomberg analysts agree that there is now a 90% chance that the ETF will be approved.
Additionally, a number of credible analysts are saying that this week's pullback will indeed be the final correction opportunity for crypto and Bitcoin before the next rally.
Source: Twitter.com
After the ruling is it likely that Grayscale will be now proceeding to work with the U.S. Securities and Exchange Commission (SEC) to transform GBTC into an exchange-traded fund (ETF).
Potentially a nudge from the judiciary could get this moving quicker. Expect dates and updates from Grayscale to move the needle in terms of the market pricing this in.
It is likely that the Grayscale spot ETF will be the very first one on the market. Grayscale would have a valid opportunity to further sue the SEC if they approved another ETF before them.
We can also assume that the SEC is sifting through more than half a dozen spot Bitcoin ETF proposals from industry giants such as Blackrock and Fidelity, however, Grayscale is now in the top spot.
Source: Twitter.com
Bitcoin is also weighed down by geo-political concerns, with Gold stealing the safe-haven flows away from BTC.
BTC does have alot of catching up to do, however, it is unlikely to break its correlation with stocks if we see the major indices under attack.
As I have said before, multi-day price closes above $28,400, and then $31,000 will be the trigger and signal that spot ETF is being priced in by the market.
Until then, watch out for big signals on-chain, such as major Age Consumed and DAA flows to further signal this reality.
Source: Santiment.net
Certain whale data indicates that huge Bitcoin accumulation is currently underway.
Be careful betting against Bitcoin in the next few month.
