Digital asset management titan Grayscale has conveyed great confidence regarding the prospective conversion of its Grayscale Bitcoin Trust (GBTC) into a Bitcoin exchange-traded fund (ETF).

This development could eliminate GBTC’s existing 8.09% discount of roughly $1.89 billion, synchronizing its share price more closely to Bitcoin’s real market value and unlocking major upside for investors.

Grayscale’s chief legal officer, Craig Salm, and chief financial officer, Edward McGee, unveiled the details. Subject to approval from the U.S. Securities and Exchange Commission, GBTC is gearing up to shift from its current OTCQX platform to the prestigious NYSE Arca exchange. This transition seeks to improve GBTC’s share price alignment with Bitcoin’s actual market price and introduce a more efficient structure for investors to swiftly create or redeem shares.

Bloomberg ETF analyst Eric Balchunas spotted the conspicuous reliance on Regulation M (Reg M) relief. He hints at past talks implying the SEC could leverage Reg M to potentially obstruct or delay certain processes, although he avoids confirming this. Balchunas highlights the intriguing timing of Reg M being mentioned right after Grayscale’s meeting with the SEC, suggesting its likely importance in their deliberations.

With Bitcoin currently valued at $39,481 and a spike in trading activity indicating surging trader interest, the possibility of a spot Bitcoin ETF gives investors a more accurate representation of Bitcoin’s worth through GBTC and opens up a safer path for institutional capital to access Bitcoin.

This news has already fueled a 3% Bitcoin price increase in 24 hours, paired with a remarkable expansion in trading volumes, signaling extensive interest.

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