In the past three weeks, the price of LINK has more than doubled, which has increased the value of GLINK shares in the Chainlink Trust of Grayscale. The premiums have increased by 200%. Grayscale holders can only leave the sphere by selling their shares to a prospective bidder; they are not eligible for redemption. The TVL of almost $4 million is claimed to be the primary cause of the premium increase. The product’s status as a security and its unique availability to institutional investors are what really set it apart.
The conjecture around the impending Spot Bitcoin ETF is another factor contributing to the premium spike for GLINK. A product from Grayscale meets the requirements for eligibility much like a Bitcoin ETF. The business has already filed to become an Exchange Traded Fund (ETF) for bitcoin through the conversion of its Bitcoin Trust. This action was taken in October 2021, but the US Securities and Exchange Commission, or SEC, later reversed it.
The US District of Columbia Court of case then took a stance on Grayscale’s case. As per the final ruling, Grayscale’s Bitcoin Trust bears resemblance to upcoming exchange-traded funds. Thus, it provides justification for approving the conversion. This undoubtedly affected the SEC, and there were rumours that the Commission would challenge the appeal.
It has so far declined to issue any more appeals, and there are rumours that an ETF conversion will occur soon. Additionally, BlackRock’s application is almost ready for approval. Early in January 2024, BlackRock, one of the biggest asset managers globally, is anticipated to get permission for the Spot Bitcoin ETF.
These kinds of updates are arriving at a time when Bitcoin is driving the cryptocurrency market’s revival. At $35,368.90, the token was last observed being traded. From where it was dancing around $25,000, it has gone a long way. Although BTC was actually much below it, it is nevertheless noteworthy that it has increased by 2.18% over the past 24 hours and 2.84% over the past 7 days. Remarkably, there has been a 27.06% rise in the previous 30 days.
LINK, however, has also reported a recovery. The rise to $13.56 is the consequence of a 6.38% positive change over the previous day. As of the time this article was written, there had been a rise of 25.21% in the previous seven days and 78.93% in the previous month.
The price of LINK on September 18, 2023, was $6.14. The SEC’s chair, Gary Gensler, recently posted on X, formerly Twitter, to spice up the Halloween wish for the Bitcoin White Paper on its anniversary, even though the agency declined to contest the appeal. A 200% increase in premium for Grayscale Chainlink Trust may indicate that its product conversion is about to occur. It might also happen before or after BlackRock receives its permission.