GBTC premium nears 2022 high as SEC faces call to approve Bitcoin ETF

Matters are looking for the largest institutional Bitcoin (BTC) producer in the US by asset holdings.

Data from on-chain monitoring resource Coinglass confirms that as of April 21, Grayscale Bitcoin Trust (GBTC) is bouncing back towards its 2022 highs.

Grayscale CEO: ‘If’ Not ‘When’ Bitcoin Spot ETF in US

After a problematic year so far, GBTC has benefited from a stable Bitcoin price movement.

Bitcoin’s plunge from its November highs has already resulted in a negative “premium” for GBTC, which means that its share price is, in effect, trading at a discount to Bitcoin’s spot price. This discount reached its deepest level ever in January when the premium for GBTC reached nearly -30%.

Since then, the reversal has begun, and as of April 21, the premium is -21.4% – close to its smallest for 2022.

GBTC premium against asset holdings against the BTC/USD chart. Source: Coinglass

Outstanding results from trading sentiment, and Grayscale has been under pressure over the past year, especially since the approval of the first Bitcoin futures-based forex trading funds (ETFs) in the US.

Grayscale CEO Michael Sonnenchin, and other industry figures have been outspoken critics of regulators in Washington, who, while approving ETF futures products, continue to reject the spot equivalent in Bitcoin.

The Securities and Exchange Commission (SEC), which approves candidates based on laws dating back to 1933, has become the subject of private public scorn as other countries, with Australia recently beating the United States at launch.

Earlier this month, the Securities and Exchange Commission (SEC) approved another futures-based ETF, this time based on the Securities and Exchange Act of 1933 rather than the Investment Corporation Act of 1940 used previously. This was a major milestone,” Sonnenshein told CNBC this month. It effectively backs the SEC into a corner with fewer and fewer excuses for not breaking barriers to entry into an immediate ETF alternative.

“It’s really, in our opinion, a question of ‘when’ and not ‘if’,” he explained to the network.

“If the SEC cannot look at two similar issues, the futures ETF and the spot ETF, through the same lens, it could in fact be a cause of administrative procedure violation.”

Matt Hogan, CEO of ETF provider Bitwise, said in the same interview that spot ETFs are “what people really want” in terms of institutional investment products tied to Bitcoin.

As previously reported by Cointelegraph, futures ETFs have faced criticism from their own with commentators arguing that they haven’t solved any of the weaknesses the spot product might have with the potential to bring in new products of their own.

Nasdaq highlights ‘rising’ institutional demand

Meanwhile, a Nasdaq survey of potential US investors revealed that more than 70% of those asked would consider exposure to Bitcoin through spot ETFs if one were available.

Related: Bitcoin vs. ETFs: Key Differences Explained

“The vast majority of advisors we surveyed are either planning to start allocating to cryptocurrencies or increasing their existing allocation to crypto,” said Jake Rappaport, head of research at Nasdaq’s Digital Asset Index, in an accompanying press release on April 11.

“As demand continues to grow, consultants will be looking for an enterprise solution to the encryption issue that now dominates client conversations.”

The survey also found that 86% of advisors who have already invested in cryptocurrency plan to increase this exposure in the next year.

GBTC had 640,930 BTC in holdings as of April 21, valued at $26.9 billion at the time of writing.

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