- The SEC not appealing its courtroom loss to Grayscale has emboldened crypto supporters.
- Still, analysts warn of brewing risks for Bitcoin at the end of the year.
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Happy Friday!
Tom Carreras here.
All eyes are on Grayscale after the US Securities and Exchange Commission did not appeal the digital asset manager’s August courtroom win.
Grayscale’s Bitcoin Trust shares rose on the news. At the time of writing, the GBTC discount — the discrepancy between the price of GBTC shares relative to the Bitcoin it holds — had narrowed to 12.5%, according to CoinGlass.
The discount can be seen as an indicator of how likely it is that a spot Bitcoin ETF will be approved, Coinbase’s head of institutional research, David Duong, said in September. Based on this logic, there’s now an almost 88% probability of approval.
Ark Invest CEO Cathie Wood and Galaxy Digital boss Mike Novogratz also said this week that the SEC was showing signs of getting ready to greenlight spot Bitcoin ETFs.
Larry Fink made similar comments on Fox Business this week.
”We’re hearing from clients around the world about the need for crypto,” the BlackRock CEO said. He called Monday’s Bitcoin rally a sign of a “flight to quality” in light of the Israeli-Palestinian war.
Still, analysts at crypto trading firm QCP Capital cautioned this week that their confidence may soon be tested amid mounting risks in stock and bond markets.
Have a great weekend,Tom.
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