Grayscale Files With SEC to Convert Its Bitcoin Trust Into an ETF
Grayscale Investments, the world’s largest digital currency asset manager, has filed with the Securities and Exchange Commission to convert its Grayscale Bitcoin Trust (GBTC) into a bitcoin spot ETF, the company announced in a press release Tuesday.
- The move comes just after the SEC cleared the way on Friday for bitcoin futures ETFs to trade, with ProShares Bitcoin Strategy ETF scheduled to start trading on the NYSE on Tuesday.
- GBTC first launched in 2013 and has become the largest bitcoin investment vehicle in the world, with assets under management of close to $40 billion. It holds roughly 3.44% of all bitcoin in circulation, according to Grayscale.
- Grayscale has talked repeatedly about its plans to convert GBTC, as well as its 14 other crypto trusts, into ETFs.
- Grayscale’s ETF would be backed by actual units of the cryptocurrency, not simply linked to it via derivatives contracts such as futures. Should the proposal gain approval, it would be a further expansion of the leading cryptocurrency as a recognized investible asset.
- Some analysts feel the likelihood of Grayscale getting approval of a bitcoin spot ETF anytime soon are slim, given SEC chair Gary Gensler’s often-stated preference for a futures product that might confer more investor protections.
- The SEC will now have 75 days to review Grayscale’s application.
Grayscale is a unit of Digital Currency Group, which is also the parent of CoinDesk.
UPDATE (Oct. 19, 14:06 UTC): Added information in fifth bullet point.
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Author: Nelson Wang
