Grayscale Bitcoin Trust Discount Narrows to 22-Month Low as SEC Reconsiders Spot ETF Approvals

Grayscale Bitcoin Trust (GBTC) discount narrowed to 15.87% on Friday, reaching a 22-month low. The discount has been steadily decreasing since hitting 50% in December.

The narrowing follows the SEC deciding not to appeal the court ruling that overturned its rejection of Grayscale's ETF application. The SEC now has to reconsider Grayscale's ETF bid.

The SEC's engagement with other ETF applicants signals increased openness to approving a spot bitcoin ETF.

If no appeal, analysts expect potential spot ETF approval in early 2024, with Grayscale likely taking the lead over other issuers.

Major asset managers like BlackRock have filed for bitcoin ETFs in recent weeks following the court ruling, which could unlock significant inflows if approved.