Grayscale plans to convert its GBTC funds to Bitcoin ETF

Biggest Bitcoin funds globally plan to get converted to ETFs
  • Bitcoin ETFs application filed by the world’s largest BTC fund manager
  • Grayscale seeks to convert GBTC funds to exchange-traded products
  • Following ProShares’ recent launch of Bitcoin Strategy ETF, Grayscale expects a regulatory green signal

Bitcoin ETFs are something that several firms have been seeking for regulatory approvals for several years. With this year’s Biden administration, Gary Gensler took the chair of the US Securities and Exchange Commission (SEC). Being a blockchain professor, Gensler gave hope to such firms seeking regulatory clearance to establish BTC exchange-traded products (ETF). Indeed, this year, the United States witnessed its first BTC ETF. Following such a scenario, Grayscale Investments LLC and the New York Stock Exchange (NYSE) have documented the conversion of the largest BTC trust to an ETF. Notably, Grayscale’s application landed on the same day, when the ProShares BTC ETF debuted, as the first such financial instrument in the United States.

Grayscale is 100% committed to converting into Bitcoin ETFs

Although the US SEC has permitted firms to launch derivative-based products, it is yet to permit the kind of structure being used by Grayscale. Notably, Grayscale directly holds the leading crypto coin. Indeed, the trust’s filing starts a window for the financial regulator to reject or delay the GBTC conversion application. According to Michael Sonnenshein, the CEO of Grayscale asset manager, the firm is now 100% committed to turning GBTC into Bitcoin ETFs as the financial regulators in the region provide a green signal.

ProShares BTC ETF debut clears the way

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It is noteworthy that to further its efforts, Grayscale had hired a global ETF head in August. According to Sonnenshein, with the launch of BITO, physical Bitcoin ETF approval, it seems just a period. In a recent interview, Sonnenshein added that Grayscale believes that it’s just a period because the futures and the spot pricing for BTC are inextricably tied. Moreover, the firm believes that it has the willingness to allow or clear the way for a Bitcoin Futures ETF in the market, and may clear away for a spot product. Notably, in the current scenario, GBTC is hodling approximately 3.4% of the total BTC supply.

Why is Grayscale committed to converting

Grayscale has been long observed committing to converting the leading cryptocurrency fund to Bitcoin ETFs. According to Dave LaValle, Grayscale’s global head of ETFs, the firm has never initiated GBTC back up to new investors, as they can trade on the secondary market. Moreover, it is no secret that GBTC trades at a discount and offers an opportunity to investors to take advantage of. Indeed, such measures are another reason why the firm remained committed to converting to an ETF.

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