The Bitcoin Investment Trust, which began trading on May 4, is believed to boost the acceptance of digital currency by investors.
GBTC’s decline coincides with a recent downturn in the crypto market, resulting in Bitcoin price falling drastically.
Grayscale CEO Sonnenshein ask the SEC to approve options for GBTC, adding that the Commission has already approved same for futures ETFs.
An analyst from Grayscale argued that the crypto market is anticipating Ethereum’s transaction throughput and cost reduction through the Dencun upgrade more, making it more competitive with other layer-1 blockchains.
Bitcoin crossed $52,000 and seems ready for more increase as spot ETFs receive more large inflows, with BlackRock and Fidelity leading.
The IBIT ETF from BlackRock is now the fifth-largest of all US ETFs by inflows, despite heavy outflows from Grayscale’s product.
According to data from BitMEX Research, GBTC witnessed a decrease in outflows, with $394.1 million on January 25, down from $429.3 million on Wednesday and $515.3 million on Tuesday.
The JPMorgan analysts highlighted BlackRock and Fidelity Investment’s spot Bitcoin ETFs as emerging competitors to GBTC.
The introduction of spot Bitcoin ETFs triggered a massive retracement in the overall crypto market.
The latest amendment makes it the third time Grayscale has updated its Bitcoin spot ETF application following the SEC’s directive to submit revised documents by December 29, 2023.
While the average performance of crypto funds did not match the more than 150% rally in Bitcoin this year, the positive shift in fortunes is a promising development for the industry.