According to CoinDesk, the Grayscale Bitcoin Trust (GBTC) experienced its busiest trading session in 14 months, with nearly 20 million GBTC shares changing hands. This trading frenzy was triggered by a federal appeals court ruling that the U.S. Securities and Exchange Commission must review its rejection of Grayscale Investments' attempt to convert its flagship bitcoin-focused fund, which manages over $17 billion worth of BTC, into an exchange-traded fund (ETF). The share price surged 18% to almost $21, the highest since bitcoin (BTC) hit $31,000 in mid-July. BTC jumped 7% to $28,000 on the news, while the discount on GBTCâs share price narrowed to as low as 17% during the day. Some investors have been purchasing GBTC shares over the last three to six months, betting on a narrowing discount in case of a favorable court decision. Now, some of them are taking profits as the discount has collapsed. The trade could still provide a near 25% return if the discount closes on top of any BTC market gains, according to Doug Schwenk, CEO of crypto data provider Digital Asset Research.
