The SEC must appeal Grayscale’s recent court win by the end of the day today, or 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 signaling an imminent breakout, which could hint at the SEC failing to file an appeal by the deadline. Is this a sign of what is to come in the spot crypto market?
Grayscale Bitcoin Trust Begins Possible Bullish Breakout
The price of per BTC is determined on the free and open market, based on an order book system of bids and asks that represent supply and demand. If there are more buyers than sellers, price moves up and vice versa.
Grayscale on the other hand owns a substantial amount of Bitcoin in which it holds in trust, and offers investors shares of this product as GBTC. It attracts a very different type of investor than the retail-driven crypto market, who aren’t interested in digital asset custody.
The price of GBTC can trade at a premium or discount compared to the price per coin, depending on investor sentiment. Over the last several months, Grayscale’s Bitcoin Trust has been making much higher lows than the spot chart.
And as of this week, GBTC might have broken out of resistance and is signaling a possible move higher. With the possibility of the SEC failing to file for an appeal by the end of the day today, sentiment could switch decidedly bullish in crypto.
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 the approval over a slew of spot BTC ETFs. The SEC has seven applications to consider, which include BlackRock’s iShares.
As a speculative asset class, the SEC missing the appeal deadline could send speculation wild that a domino-effect of ETF approvals could be on the horizon. An ETF has been heralded as potentially bringing hundreds of billions, if not trillions of dollars into the top cryptocurrency by market cap.
Could the Grayscale Bitcoin Trust chart be foretelling the world that spot ETF season is right around the corner?
One coin, two charts #Bitcoin (left) versus #GBTC (right)
Is Grayscale’s BTC signaling an early breakout and prelude of what’s to come? pic.twitter.com/zavJ2isWLA
— Tony “The Bull” (@tonythebullBTC) October 13, 2023
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Author: Tony "The Bull" Severino