We saw another round of rejected spot bitcoin ETFs last week. It was no surprise that the SEC rejected both Bitwise’s and Grayscale’s applications. Both firms filed for spot-based bitcoin ETF in October last year, but the decisions have been delayed several times as the SEC requested additional information and comment from the public.
Grayscale wants to convert its bitcoin trust (GBTC) with $12.35 billion in AUM into an ETF. This has drawn increased attention to the GBTC discount to the trust’s net asset value (NAV), which is currently more than 30%. If the ETF is approved, the discount will effectively disappear, which has made it a hot discussion topic lately.