The Grayscale Bitcoin Trust (GBTC) has been experiencing a surge in buyers as it approaches its 2023 highs. This comes after BlackRock, the world’s largest asset manager, filed for a Bitcoin futures ETF with the U.S. Securities and Exchange Commission (SEC).
The GBTC is a popular investment vehicle for those looking to gain exposure to Bitcoin without actually owning the cryptocurrency. It allows investors to buy shares in the trust, which holds Bitcoin as its underlying asset. The trust is managed by Grayscale Investments, a subsidiary of Digital Currency Group.
According to data from Bybt, the GBTC premium has been steadily increasing since mid-October, reaching a high of 38.6% on November 1st. This means that investors are willing to pay a premium to buy shares in the trust, indicating strong demand.
The increase in buyers can be attributed to several factors, including the recent filing by BlackRock for a Bitcoin futures ETF. If approved by the SEC, this would be the first Bitcoin ETF in the United States and could potentially open up the market to a wider range of investors.
Additionally, the recent price surge of Bitcoin has also contributed to the increased interest in the GBTC. Bitcoin hit an all-time high of over $64,000 in April 2021 and has since been hovering around the $60,000 mark. This has led many investors to seek exposure to the cryptocurrency through alternative investment vehicles such as the GBTC.
Another factor that may be driving the increase in buyers is the upcoming unlocking of GBTC shares. The trust has a six-month lock-up period for its shares, after which they can be sold on the open market. The next unlocking is scheduled for November 15th, which could lead to increased selling pressure on the trust.
Despite this potential selling pressure, many investors remain bullish on Bitcoin and are willing to hold onto their GBTC shares. The trust currently holds over 654,000 Bitcoin, making it one of the largest holders of the cryptocurrency in the world.
In conclusion, the Grayscale Bitcoin Trust has seen a surge in buyers as it approaches its 2023 highs. This can be attributed to several factors, including the recent filing by BlackRock for a Bitcoin futures ETF, the price surge of Bitcoin, and the upcoming unlocking of GBTC shares. While there may be some selling pressure in the short term, many investors remain bullish on Bitcoin and are willing to hold onto their GBTC shares.
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- Source: Plato Data Intelligence.