Grayscale confirms its intention to turn its Grayscale Bitcoin Trust (GBTC) into an ETF

Grayscale reaffirms its ambition to offer an ETF

Days after the Securities and Exchange Commission (SEC) approved the launch of the first Bitcoin (BTC) -based exchange-traded fund (ETF), rumors of an ETF at Grayscale resurfaced.

In a thread published on its Twitter page, the communications director of the American giant, Jennifer Rosenthal, confirmed the information. The asset manager does intend to transform its Grayscale Bitcoin Trust (GBTC) and an ETF.

Today, I’m happy to confirm that @Grayscale * WILL * file for $ GBTC to be converted into an #ETF as soon as there’s a clear, formal indication from the SEC.

– Jennifer Rosenthal (@jenn_rosenthal) October 18, 2021

However, Grayscale does not intend to rush and would like to benefit from the feedback from the fund launched by ProShares Trust. The asset manager will only submit his plan to convert GBTC to ETF as soon as there is “a clear and formal indication from the SEC” to this effect. In other words, when it “has formally expressed its confidence in the underlying Bitcoin market”.

Grayscale is therefore waiting to see the direction that the ProShares Trust ETF will take, whose official entry on the New York Stock Exchange is scheduled for Tuesday, October 19, under the BITO ticket.

👉 On the same subject – France: launch of a Bitcoin ETF (BTC) regulated by the AMF at Melanion Capital

What are the chances of Grayscale?

The approval of this Bitcoin-based ETF therefore marks an important step in the democratization of cryptocurrencies. Since 2018 and the first filing of an authorization request for this type of product to the SEC, the regulatory institution has continued to oppose it, kicking in touch on all subjects related to cryptocurrencies.

But why have you accepted this one and refused all the others? Unlike many ETF products rejected by the SEC, this one is indexed to futures contracts. As a result, it obeys the rules associated with this type of contract and is therefore regulated and regulated … Unlike Bitcoin itself.

In other words, even if Grayscale wants to take advantage of the wave of enthusiasm to file its proposal to convert its GBTC into an ETF, the chances of it happening are slim. The product Grayscale plans to offer is based on funds where Bitcoins are physically held, which appears to be the main reason for previous SEC denials.

In the meantime, Grayscale is expanding its crypto product offering

Still, far from this media turmoil about the queen of cryptocurrencies, Grayscale continues to expand its product line by adding 3 cryptocurrencies. It is now possible to trade on the Grayscale Zcash Trust (ZCSH), its Grayscale Stellar Lumens Trust (GXLM) and its Grayscale Horizen Trust (HZEN).

According to Grayscale, these funds are created to allow investors to gain exposure to the evolution of the prices of the underlying assets, without having to question the purchase, storage and resale of the cryptocurrencies themselves.

The American asset manager already offers six other cryptocurrency investment products. In particular, we find exposure to Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), Ethereum Classic (ETC) and Litecoin (LTC). In addition, it is possible to gain exposure to a panel in addition to digital assets through its Digital Large Cap Fund, a fund made up of a multitude of cryptocurrencies among the most capitalized.

👉 On the same subject – Grayscale is launching a fund dedicated to decentralized finance (DeFi)

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About the Author: Lilian Aliaga


Freelance writer located between Paris and Toulouse. I want to share my passion for the world of cryptocurrencies with as many people as possible. I am also interested in technical analysis and trading.
All articles by Lilian Aliaga.

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