Grayscale’s Bitcoin Trust (GBTC) experienced an almost 80% surge in volume in June, coinciding with BlackRock and two other major financial companies filing applications to the U.S. Securities and Exchange Commission (SEC) for a spot bitcoin exchange-traded fund (ETF).
GBTC’s trading volume climbed to $45 million in June, solidifying its standing as the most traded trust product in the sector, accounting for a whopping 74% of total trade volumes, as reported by CCData. This increase aligns with a wave of ETF filings in June by prominent firms such as Invesco, WisdomTree, and BlackRock.
CCData attributed GBTC’s rise in volume and market share to a growing positive sentiment towards Bitcoin, the underlying asset. Compared to Grayscale’s Ethereum Trust (ETHE), GBTC notably outperformed in trading volumes. From September till June 2023, GBTC’s volume jumped from $35.6 million to $45 million, capturing 74% of the total volume for trust products, a stark rise from 50.9% in September. On the other hand, ETHE’s volume dropped from $31 million in September to $14.4 million in June 2023, with its market share reducing from 44.4% to 23.6%.
In addition to the volume increase, GBTC saw its share price soar to a one-year high, following news that Fidelity Investments was planning to file its own application for a spot bitcoin ETF, mirroring BlackRock’s move.
Moreover, GBTC’s share price discount to its net asset value, a key metric in the digital asset sector, dropped below 30% on Tuesday, a figure not witnessed since July 2022.
