According to CoinDesk, Bitcoin (BTC) and Ether (ETH) began the trading week in Asia with little change, as the Grayscale Bitcoin Trust (GBTC) discount narrowed and anticipation for the approval of spot bitcoin and ether ETFs grew. The GBTC discount to its net asset value is now at 10.35%, a significant decrease from its record of almost 50% in December last year. The U.S. Securities and Exchange Commission (SEC) has initiated discussions with Grayscale Investments about converting the trust to a spot bitcoin ETF, which could provide significant market momentum and liquidity.
Bitcoin fund holdings have reached an all-time high, with total inflows exceeding $1 billion this year, driven by investor enthusiasm over the anticipated approval of a spot bitcoin ETF in the U.S. Market sentiment has also been lifted by last week's announcement that fund-management giant BlackRock is planning to issue an ether-based ETF. This news pushed ETH to a seven-month high, outperforming bitcoin. In a recent interview, Diffuse Funds CEO Kenny Estes said BlackRock's decision to apply for an ether ETF shows the financial giant is highly confident the bitcoin ETF will be approved.
Trading activity on decentralized exchanges (DEXs) is at a six-month high as traders cycle out of altcoins and into ether in anticipation of any ETF approval, according to research from WOO Network. Crypto traders will likely have their eye on Core Consumer Price Index data and U.S. retail sales data, scheduled to be released later this week, along with speeches by New York Fed President John Williams, which should give clues into where interest rates are going.
