The SEC must appeal Grayscale’s recent court victory by the end of the day today, or it will be forced to approve or delay the company’s plan to convert GBTC into a bitcoin ETF.
The Grayscale bitcoin Trust (GBTC) chart could be indicating an imminent breakout, which could indicate that the SEC has not filed an appeal before the deadline. Is this a sign of what’s to come in the crypto spot market?
Grayscale bitcoin Trust Starts Possible Bullish Breakout
The price of each btc is determined in the free and open market, based on an order book system of bids and offers that represent supply and demand. If there are more buyers than sellers, the price rises and vice versa.
Grayscale, on the other hand, owns a substantial amount of bitcoin in which it has a trust and offers investors shares of this product as GBTC. It attracts a very different type of investor to the retail crypto market, who is not interested in digital asset custody.
The price of GBTC may trade at a premium or discount compared to the price per coin, depending on investor sentiment. Over the past few months, Grayscale’s bitcoin Trust has been hitting much higher lows than the spot chart.
And as of this week, GBTC might have broken the resistance and is signaling a possible bullish movement. With the SEC potentially not filing an appeal by the end of the day today, sentiment could turn decidedly bullish on cryptocurrencies.
btc (left) versus GBTC | GBTC on TradingView.com
Spot price lags behind, but btc ETF season could be here
crypto Industry Lawyers reveal that the SEC could ultimately find other reasons to deny Grayscale’s ETF application; However, the SEC appears to be running out of reasons to deny or delay approval of a large number of btc spot ETFs. The SEC has seven applications to consider, including BlackRock’s iShares.
As a speculative asset class, the SEC’s failure to meet the appeal deadline could lead to speculation that a domino effect of ETF approvals could be on the horizon. It has been announced that an ETF could add hundreds of billions, if not trillions, of dollars to the leading cryptocurrency by market cap.
Could the grayscale bitcoin Trust chart be predicting to the world that spot ETF season is just around the corner?
One coin, two graphs bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>#bitcoin (left) versus #GBTC (good)
Does Grayscale’s btc indicate an early breakout and a prelude to what’s to come? pic.twitter.com/zavJ2isWLA
— Tony “El Toro” (@tonythebullBTC) October 13, 2023
