LINK has more than doubled in price in the last three weeks, and this has surged the share value of GLINK shares in the Chainlink Trust of Grayscale. They are up by 200% in premiums.
Shares in Grayscale cannot be redeemed; holders can only exit the sphere by selling their shares to a potential buyer. The rise in the premium is said to be driven by the TVL of approximately $4 million. What truly defines the product is its nature as a security and its exclusive accessibility to institutional investors.
Another reason GLINK has experienced a surge in premium is the speculation surrounding the upcoming Spot Bitcoin ETF. Grayscale has a product that shares the same features for qualification as a Bitcoin ETF. The venture has already applied to convert its Bitcoin Trust into a Bitcoin ETF (Exchange Traded Fund). This move dates back to October 2021, which was later stepped back by the SEC, the US Securities and Exchange Commission.
Grayscale then filed an appeal, which was sided with by the US District of Columbia Court of Appeal. The final verdict stated that the Bitcoin Trust by Grayscale is similar to future ETFs. Hence, justifying its approval for the conversion. Needless to say, this hit the SEC, and there were talks that the Commission would challenge the appeal.
It has, so far, declined to make any further appeal and has sparked rumors of an ETF conversion hitting the road any time soon.
BlackRock is close to getting its application approved as well. One of the largest asset managers in the world, BlackRock, is expected to receive approval for the Spot Bitcoin ETF in the early days of January 2024.
Updates like these are coming at a time when Bitcoin is leading the recovery in the crypto market. The token was last seen exchanging hands at $35,368.90. It has come far from the point where it was dancing around $25,000. BTC was actually way below it, but the current increase of 2.18% in the last 24 hours and 2.84% in the last seven days is worth noting. Interestingly, an increase of 27.06% has been achieved in the last 30 days.
Having said that, LINK has recorded a recovery itself. The increase to $13.56 comes as a result of a positive 6.38% change in the last 24 hours. This is an increase of 25.21% in the last 7 days and a surge of 78.93% in the last month at the time of drafting this article.
LINK was at $6.14 as of September 18, 2023. While the SEC refused to challenge the appeal, its Chair, Gary Gensler, recently published a post on X, formerly Twitter, to add spice to the Halloween wish for Bitcoin White Paper on its anniversary.
A rise of 200% in premium for Grayscale Chainlink Trust could be a hint of its product conversion happening any time soon. It could also be after BlackRock secures its approval or before that.