Grayscale Bitcoin Trust Soars 220% on Prospects of Bitcoin ETF Approval

Grayscale Bitcoin Trust (GBTC) shares have surged 220% this year, outperforming the S&P 500 and Nvidia.

GBTC's rise is amid hopes the SEC will approve converting it to a Bitcoin ETF, which would eliminate its discount to NAV.

Investors have been buying GBTC and shorting Bitcoin futures to profit from the narrowing discount.

Unwinding of that trade could bolster Bitcoin's price as the ETF conversion looks increasingly likely.

While ETFs may boost Bitcoin to $50k+, they could also bring more institutional short selling pressure.