The substantial difference in price between GLINK and LINK is driven by the doubling of the total value locked in GLINK, reaching approximately $4M. CoinShares reported that the product received $2M worth of inflows over the past week. It is important to note that Grayscale Trusts shares, including GLINK, are securities accessible only to sophisticated investors and cannot be redeemed for the underlying asset.
Despite the non-redeemable nature of Grayscale Trust shares, there is speculation that this may soon change. Grayscale previously applied to convert its Bitcoin Trust into a Bitcoin exchange-traded fund (ETF) in October 2021. Although initially denied by the U.S. Securities and Exchange Commission (SEC), Grayscale's appeal was supported by the U.S. District of Columbia Court of Appeal in August. This ruling deemed Grayscale's Bitcoin Trust "materially similar" to previously approved futures ETFs. The SEC's decision to not appeal the court's ruling has fueled expectations that Grayscale's ETF conversion may proceed, potentially paving the way for other Grayscale Trusts to undergo similar restructuring.
This news follows BlackRock's application for a spot Bitcoin ETF in July, which has ignited optimism that the regulatory approval of the first ETF investing in spot BTC may be imminent. In recent months, GBTC shares have similarly outperformed spot Bitcoin, with GBTC gaining 200% year-to-date compared to a 10% gain for BTC over the same period.
Title: GLINK Shares Trade at Triple the Price of Spot LINK Tokens
Summary: Shares in Grayscale's Chainlink Trust, known as GLINK, have surged to a 200% premium compared to the spot LINK markets. This increase in price is attributed to the growing demand for GLINK and the anticipation of Grayscale's conversion into an ETF. The surge in GLINK's value comes alongside the rising price of LINK and the broader recovery of the crypto market.
Paraphrased: GLINK shares, which belong to Grayscale's Chainlink Trust, have experienced a significant increase in price, reaching a 200% premium compared to the spot LINK markets. This surge in value was observed by ChainLinkGod, a well-known figure in the Chainlink community. The difference between GLINK and LINK has grown from around 100% to 200% during the recent rally of Chainlink.
This rise in price comes after LINK's value more than doubled over the past three weeks, following the recovery of the overall cryptocurrency market. As of now, LINK is priced at $13.13, rising from $6.14 on September 18th, according to CoinGecko. It is worth noting that there was no spread between GLINK and LINK in January of this year.
The reason for the significant price difference between GLINK and LINK is the doubling of the total value locked in GLINK, which now sits at approximately $4 million. In the past week alone, the product has received $2 million worth of inflows, as reported by CoinShares. However, it is important to mention that Grayscale Trusts shares, including GLINK, are securities that can only be accessed by sophisticated investors and cannot be redeemed for the underlying asset they track.
Despite the current non-redeemable nature of Grayscale Trust shares, some experts believe that this may change in the near future. Grayscale previously applied to convert its Bitcoin Trust into a Bitcoin exchange-traded fund (ETF) in October 2021, but the application was initially rejected by the U.S. Securities and Exchange Commission (SEC). However, the U.S. District of Columbia Court of Appeal ruled in favor of Grayscale's appeal in August, stating that Grayscale's Bitcoin Trust is similar to previously approved futures ETFs. The SEC's decision to not appeal the court's ruling has sparked speculation that Grayscale's ETF conversion may proceed, potentially opening the door for other Grayscale Trusts to undergo similar restructuring.
This recent development follows BlackRock's application for a spot Bitcoin ETF in July, which has raised hopes that the first ETF investing in spot BTC will receive regulatory approval soon. In recent months, GBTC shares have also outperformed spot Bitcoin, with GBTC gaining 200% year-to-date compared to a 10% gain for BTC over the same period.