Bloomberg Strategist Sees GBTC Lawsuit As A Sign Of Bitcoin Growth

Mike McGlone, who is a senior commodity strategist at Bloomberg, suggests that the market for Bitcoin and other cryptocurrencies is likely to experience significant changes due to increasing open interest in Bitcoin futures and a reduction in price spreads between funds. These developments could signify the natural maturation of the market.

The Grayscale Bitcoin Trust (GBTC) litigation, which may signal a turning point for Bitcoin and cryptocurrency maturity, was recently mentioned by McGlone in a tweet.

The GBTC has historically traded at a high premium to the underlying asset, exposing investors to Bitcoin through trust. Despite decreasing premiums over time, the trust’s price is 36% lower than BTC’s.

The trust now has the option to become an ETF, which suggests that this negative trend may be coming to a stop. This action could fundamentally alter the cryptocurrency market since it would make it simpler and more effective for institutional investors to invest in bitcoin.

Grayscale argued against the SEC’s decision to reject its ETF application in an oral hearing on Mar 7. As a result, Bloomberg now thinks Grayscale will prevail in a decision to overturn the rejection order.

The cryptocurrency market, which has witnessed a surge in institutional interest in recent years, might benefit significantly from this news for BTC. Investors are increasingly looking past short-term volatility and concentrating on long-term potential, as evidenced by rising futures open interest and decreasing fund price differences.

Yet, the ongoing legal battle over the GBTC may be a crucial turning point for developing bitcoin and cryptocurrencies. The future of Bitcoin and other cryptocurrencies appears promising as more institutional investors enter the market and regulatory clarity increases.

The Rollercoaster Of Bitcoin Price: An Analysis

Due to negative news, the price of bitcoin has fallen below $20,000 for the first time since mid-Jan. Despite the setback, BTC has made some progress sharply. According to CoinMarketcap data, BTC is trading at $22,011.29 with a gain of 7.36% over the last 24 hours.

Bitcoin hit a $69K all-time high in Nov 2021 but fell sharply in 2022. It started 2023 at around $16.6K, a significant drop from its previous high. BTC surged over 50% for the year in mid-Feb, hitting $25,000, marking a solid increase.

Related Reading | Binance Continues To Innovate With PoR Upgrade & New Token Additions

The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing

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