On June 16, Grayscale Investments bitcoin trust (GBTC) quotes decline relative to NAV exceeded 34%. Arcane Research explained the dynamics with the problems of Three Arrows Capital (3AC).
The specialists referred to Bloomberg data, according to which 3AC was the largest holder of GBTC (38.9 million shares). Against the backdrop of liquidity problems, the company considered, among other things, the option of selling assets.
The hedge fund built up positions in the bitcoin trust, hoping to cash in on the elimination of the discount ahead of the verdict expected on July 6 SEC on Grayscale’s proposal to convert GBTC into ETFs. To do this, the company bought shares of the trust and opened a short on the first cryptocurrency.
On June 29, prior to a decision on Grayscale’s application, the Commission will respond to Bitwise’s announcement to launch a spot Bitcoin ETF. The company is cautiously optimistic about this.
Analysts stressed that the resulting discount to NAV in GBTC looks unjustified. With a management fee of 2% per annum, the market “does not see” the conversion of a closed trust into an exchange-traded fund over the next 17 years. Experts consider this scenario unlikely.
Arcane Research considered the possible SEC approval of a spot bitcoin ETF as bearish. They explained this by the potential opening of shorts on the first cryptocurrency by arbitrageurs.
Recall, Grayscale Investments CEO Michael Sonnenschein called the launch, with the consent of the regulator, of a reverse exchange-traded bitcoin fund, which allows you to open short positions in digital gold, a positive moment.
Earlier, the top manager admitted the possibility of filing a lawsuit against the SEC in case of refusal to register the GBTC trust as a spot bitcoin ETF.
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