Reason for GBTC’s 400% increase in trading volume in 5 days.
The Bitcoin Investment Trust (GBTC) from Grayscale is currently attracting attention from investors, as evidenced by its trading volume. In the last week, GBTC’s trading volume has increased by over 400%. As of June 14, the daily trading volume of GBTC was $16.1 million, but within just 5 days it increased massively to around $80 million.
Why Is GBTC Trading So Much?
It is interesting to note that asset management firm BlackRock filed for a spot Bitcoin ETF on June 15, which has brought renewed hope that the US Securities and Exchange Commission (SEC) may finally approve one. If this happens, Grayscale can be optimistic about its proposal to convert GBTC into a spot bitcoin ETF. Although Grayscale’s proposal has been rejected by the SEC up until this point, the firm has sued the regulator since the last rejection and filed a suit against the SEC.
Earlier this week, unconfirmed reports claimed that Fidelity might be planning to acquire Grayscale, which could also help GBTC’s cause with the SEC, especially with regard to Fidelity’s reputation as an old, traditional firm.
Whatever the case may be, there is a general sense of optimism around BlackRock being successful in its bid for a spot Bitcoin ETF, which is expected to pave the way for Grayscale to change its non-redeemable trust shares as well. This is why GBTC is currently being traded at such a high rate.
