Ark Invest highlighted positive market trends in Grayscale Bitcoin Trust (GBTC), indicating increasing confidence in its potential transition to a spot Bitcoin exchange-traded fund (ETF).
These findings arrive amidst widespread speculation within the industry following the recent favorable ruling in favor of Grayscale against the SEC.
Ark Invest Suggests Positive Outlook For Bitcoin ETFs
According to Ark Invest’s latest report, following the US Federal Appeals Court ruling against the SEC in favor of Grayscale has led to positive trends.
On August 29, a U.S. Federal Appeals Court ruled that the U.S. The Securities and Exchange Commission (SEC) must review and reconsider the terms of its rejection of Grayscale Bitcoin Trust’s (GBTC’s) application to convert into a spot ETF.
Ark Invest observed a shift in the trend, with GBTC’s discount to net-asset-value narrowing.
“That day, GBTC’s discount- to-NAV increased from -24% to -18%, suggesting market optimism that the odds of a Bitcoin spot ETF in the short term have increased.”
It further noted that GBTC “closed August at a discount-to-NAV of -20.6%.”
Ark Invest’s Analysis of the Bitcoin Futures Market
Ark Invest has highlighted resemblances in the Bitcoin Futures market to a period shortly after Bitcoin reached its all-time high in November 2021. “Futures Open Interest Collapsed At A Rate Not Seen Since December 2021,” it stated.
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Ark Invest reported that on August 17, Bitcoin futures liquidated by 21.7%, the fastest rate since December 2021. The investment firm believes “the price correction was a cathartic sentiment correction.”
This follows Glassnode’s report of decreasing volumes and activities in the futures market in recent times.
Additionally, Glassnode highlighted a drop in the average daily trading volume for Ethereum futures last week, which fell to $8.3 billion per day.
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