Bitcoin ETF Race Heats Up as Grayscale Shares Surge and Fidelity Joins the Fray

Grayscale Bitcoin Trust's (GBTC) share price reached a one-year high as investors were optimistic about the possibility of converting the trust into an exchange-traded fund (ETF) following reports of Fidelity Investments preparing to apply for a spot bitcoin ETF. GBTC closed at $19.47, its highest since June 2020, while BTC remained mostly flat. The discount on GBTC's share price relative to its net asset value dropped to 30%, the lowest since September 2020. The recent rally in GBTC was initially triggered by BlackRock's filing for a BTC ETF, and investors are hopeful that Grayscale's lawsuit against the SEC will have a positive outcome, potentially leading to the removal of the discount and listing as an ETF.