The Grayscale Bitcoin Trust (GBTC) experienced its most active trading session in 14 months, driven by a court ruling that asked U.S. regulators to review their rejection of Grayscale’s application to convert Grayscale Bitcoin Trust into Bitcoin Spot ETF. This ruling has increased the likelihood of GBTC being converted into an ETF, appealing to a wider range of investors, media reports said.
Almost 20 million GBTC shares were traded throughout the day, marking the highest volume since the crypto market crash of June 2022, according to data from Yahoo. The share price surged by 18%, reaching nearly $21, its highest point since Bitcoin (BTC) reached $31,000 in mid-July.
This bustling trading session followed a federal appeals court decision that mandated the U.S. Securities and Exchange Commission (SEC) to reevaluate its rejection of Grayscale Investments’ bid to convert its flagship bitcoin-focused fund, managing over $17 billion worth of BTC, into an exchange-traded fund (ETF). Grayscale’s parent company, DCG, also owns CoinDesk.
Grayscale had challenged the SEC’s decision earlier in the year, sparking a legal standoff. The conversion, if approved, would enable redemptions and bridge the gap between the fund’s share price on secondary markets and the net value per share based on the fund’s BTC holdings.
In response to this news, BTC surged by 7% to $28,000, while the discount on GBTC’s share price narrowed, reaching as low as 17% during the day.
