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Saturday, August 13, 2022

Largest Bitcoin Fund Reiterate 100% Commitment To Convert GTBC To ETF

Grayscale Investments has reassured the cryptocurrency community that they will go all they can to transform Grayscale Bitcoin Trust (GBTC) into an Exchange Traded Fund. A note from Grayscale has let out that they remain committed to the conversion, although the timing has to be decided by the regulatory bodies.

Grayscale further noted that shareholders of the publicly traded shares of GBTC will not have to make any move when the company converts to an Exchange Traded Fund. The management fee will also be brought down accordingly.

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Other firms have presented Bitcoin ETF applications in the form of either S-1 or 19b-4 to the American Securities and Exchanges Commission. Grayscale investments have let us know that they will continue to pursue that space.

Global head of GBTC, David LaValle said that it was the ideal phase to submit filings. He said that since the Bitcoin futures were a bit off the focus of the SEC, the commission would be more open to filing spot-based decisions.

It Would Take Till July Before Bitcoin Major GBTC Is Transformed Into ETF

An application for an Exchange Traded Fund would require a long analysis period of around 240 days with the SEC. it thus opens up a potential next July towards moving ahead.

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Four ETFs got the green signal this October. They are all Bitcoin futures and not spot. This is something that Grayscale and various other investments are eager to change.

The asset base of GBTC is $38.8B AUM (Asset Under Management) closing this Thursday. The total for all GBTC funds stands at $53.1B.

CoinTelegraph reported that there are high hopes that spot Exchange Traded Funds will be permitted to start operation this November amid mounting criticism of future-based products.

Arthur Hayes, ex-derivatives head of BitMEX, the trading giant, was scathing in his opinion of the overall bitcoin ecosystem.

He said that GBTC was not strictly an Exchange Traded Fund and what is needed is an infusion of fresh funds into the bitcoin system.

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