SEC Needs to Take Action on Grayscale's ETF Transition! GBTC Discount Narrows, Ark Continues to Sell Shares

FOX Business reporter Eleanor Terrett posted on X that the court has officially made a final ruling on the case between Grayscale and the SEC. This is just an official authorization statement, and the court ruling will return the approval authority for the Bitcoin ETF back to the SEC, which should take the next steps in handling Grayscale's GBTC conversion to ETF application.

🚨NEW: A DC Court of Appeals has formalized its ruling in the @Grayscale vs. @SECGov case. Nothing new, just the formal mandate statement. 👇🏼 pic.twitter.com/UzdEir2nqg

— Eleanor Terrett (@EleanorTerrett) October 23, 2023

SEC Regains Control of the Serve

The cryptocurrency asset management company Grayscale submitted its S-3 filing again last week to convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin exchange-traded fund (ETF), hoping to obtain approval from the U.S. Securities and Exchange Commission (SEC).

The SEC can choose to approve Grayscale's application or reject it for other reasons. The U.S. Securities and Exchange Commission is also making decisions on many other spot Bitcoin ETF applications, including those from asset management giants like BlackRock and Fidelity.

Grayscale spokesperson Jennifer Rosenthal stated:

The Grayscale team looks forward to continuing constructive collaboration with the SEC to convert GBTC into an ETF. GBTC is operationally ready, and we intend to take action on behalf of our investors as soon as possible.

GBTC Discount Gradually Narrows, ARK Continues Selling Since August

According to data from YCharts, the discount on GBTC has narrowed to 11.03%, the lowest since August 2021.

According to information from the ArkTrace website, ARK Invest's ARKW has sold 438,720 shares of GBTC since early August, totaling $10.83 million based on yesterday's closing price of $24.7 per share.

However, GBTC remains its largest holding, with a market value of $120 million, accounting for 10.22% of its fund. Nevertheless, ARK has sold nearly one-tenth of its GBTC holdings over the past three months. Did ARK sell off its GBTC holdings early because of the converging discount on GBTC, or will Cathie Wood, also known as "Wood Sister," miss out on the most important Bitcoin rally just like she missed out on NVIDIA's surge?

Bitcoin surges to $34K! Is BlackRock's Bitcoin Spot ETF Launch Promising?

Cathie Wood's flagship fund missed out on NVIDIA's surge, skyrocketing after liquidating in January this year