The discount for Grayscale’s Bitcoin Trust (GBTC), the largest Bitcoin investment vehicle globally, has recently narrowed to its tightest point since July 2021. This positive shift is attributed to the optimism surrounding the potential approval of a bitcoin spot exchange-traded fund (ETF) in the U.S. GBTC shares now trade at an 8.06% discount to the trust’s net asset value (NAV), marking the closest proximity to NAV since July 2021, as per data from Ycharts.
Notably, the fund has consistently traded at a discount since February 2021, reaching record lows of nearly 50% last December. Bloomberg ETF analyst Eric Balchunas suggested in a social media post on X (formerly Twitter) that this narrowing trend is likely a response to Grayscale’s “updated filings/SEC meeting reported Wed.”
In another development, the U.S. Department of Justice has expressed the preference for not detaining Changpeng “CZ” Zhao until sentencing but advocates for him to remain in the U.S., citing concerns about him being a “flight risk that could be managed.” CZ’s legal team contends that his voluntary appearance in the U.S. court, despite being a non-U.S. citizen with UAE and Canadian passports, demonstrates that he is not a flight risk.
The recent filing from CZ’s counsel emphasized that Judge Tsuchida had found no risk of flight, considering factors such as Zhao’s voluntary self-surrender, his commitment to resolving the case, and the substantial bail package proposed.
In a separate development, the collaboration between Metaco, the Swiss digital assets custody firm acquired by Ripple earlier this year, and HSBC, one of the world’s largest banks, has sparked optimism among supporters of Ripple’s ledger protocol, collectively known as the “XRP army.”
This dedicated community, named after the cryptocurrency facilitating liquidity movement on the XRP Ledger, views HSBC’s choice of custody tech partner as a positive indicator that financial institutions will eventually adopt XRPL and, importantly, the XRP token. The cryptocurrency space is known for its tribal nature, with token holders often expressing strong beliefs in the potential success of their chosen blockchain.
However, it’s essential to note that assumptions linking HSBC’s decision to Ripple’s recent acquisition overlook the fact that Metaco had been actively pursuing a partnership with the bank for over 18 months, according to Adrien Treccani, CEO of the Swiss custody firm.