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- Bitcoin ETF applications count is soaring as the US is already having its first such product
- Grayscale believes it is the perfect time to apply for an ETF
- Experts in the cryptosphere are concerned over the overall strength of the market, following Grayscales plans
Bitcoin ETF or exchange-traded products have begun to receive regulatory green signals in the United States. Several firms were seeking to get approval for crypto ETFs for several years. However, as Gary Gensler took the chair of the United States Securities and Exchange Commission, the regulators began to look into such financial instruments. This month itself, the nation has witnessed its first crypto product being listed on the New York Stock Exchange (NYSE). Following the scenario, Grayscale, the world’s largest crypto fund manager with approximately $40 billion worth of assets under management (AUM) is also failing to convert its GBTC to an exchange-traded fund.
Is it the perfect time for GBTC to Bitcoin ETF conversion?
Grayscale, has plans to convert its GBTC to Bitcoin ETF. According to David LaValle, the ETFs head at Grayscale, it seems to be the perfect time to file for such a product. He further noted that as Bitcoin futures products were out now, the regulators should be open to looking at the filings for spot-based products also. Indeed, October has seen four approvals for BTC ETFs, but all of them were future-based products. Although the time is perfect, experts in the cryptosphere are still concerned over the overall strength of the market.
GBTC to ETFs is expected in July 2022
The fund’s manager could launch such a product by July 2022. Indeed, while speaking at a virtual event, David gave a nine-month timeline for approval by the US regulatory agency. It is worth noting that such applications require a lengthy 240-days analysis period with the US SEC.
Will GBTC’s shift bring retail traders?
Following the launch of future-based products, Arthur Hayes, the former head of derivatives trading giant BitMEX delivered a more acrimonious take. He suggested that the ETFs market needs fresh capital. In a recent blog post, Hayes wrote that there already exists a pseudo product with more than $40 billion in AUM. However, the product is notably not an ETF, rather it is a hoovered asset. Hence, what is required is fresh capital invested in the system. Simultaneously, it is also concerning whether the shift to Bitcoin ETF will bring net new demand from retail traders and institutions.
Following the concerns, Hayes fears that the impact on traders sowing assets under been managed into the challenge might have misplaced. Notably, those willing to be involved in the product are already there.
