The recent filing by BlackRock, the world's largest asset manager, to launch a Bitcoin spot price exchange-traded fund (ETF) has reignited hopes for the first U.S. Bitcoin spot ETF. This news has fuelled investor sentiment and given GBTC a significant boost, bringing it close to its 2023 highs​​.​.

• Experts believe that if BlackRock's ETF gets approved, GBTC could be the real winner.
  • This is because BlackRock's success could pave the way for GBTC's conversion and resolution of its 40%+ discount on top of industry growth.
  • Given BlackRock's track record and unique approach, including a redeemable trust structure, many believe that the firm's offering stands a good chance of receiving U.S. regulatory approval​.

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• BlackRock's move is not without controversy, with some questioning whether it is indeed an ETF.
  • While some argue that it will merely be a similar trust to GBTC, others point out that this is an ETF as a redeemable trust, unlike GBTC.
  • This nuanced view holds that the trust component enables BlackRock to list shares that represent a certain amount of Bitcoin, as it does not process units of Bitcoin directly at a clearinghouse​.
  • Regardless of the debate, investor interest in GBTC is on the rise. For example, hedge fund North Rock Digital has been consistently accumulating more Grayscale trusts over the past several weeks. They believe that the upside potential if Grayscale wins is significant, and the downside if they lose is minimal. This filing could be a catalyst to see them tighten to more rational levels​​.
  • BlackRock's potential Bitcoin ETF have stirred up the crypto market, leading to an uptick in investor sentiment and GBTC shares.

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