Biggest Bitcoin Fund Posts Best Day in Two Years on Court Ruling30 Aug 2023 04:50
The $17.4 billion Grayscale Bitcoin Trust rallied the most since July 2021 after a US court ruling potentially paved the way for the vehicle to convert into an exchange-traded fund.
Shares in the world’s largest Bitcoin portfolio jumped 17% on Tuesday, narrowing their discount to the value of the fund’s underlying token holdings to about 18% compared with a December shortfall of nearly 50%.
Grayscale Bitcoin Trust (ticker: GBTC) currently has a closed-end structure, leaving it prone to big deviations from its net asset value, or NAV. Becoming an ETF would allow shares to be created and redeemed to keep pace with NAV, a prospect that triggered a flurry of bets on a shrinking discount.
The renewed interest was underlined by a surge in trading volume to the highest level in over a year as more than 19 million shares changed hands, according to data compiled by Bloomberg.