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NYSE Files with US SEC to Convert Flagship Product GBTC to Bitcoin Spot ETF

UTC by Bhushan Akolkar · 3 min read
NYSE Files with US SEC to Convert Flagship Product GBTC to Bitcoin Spot ETF
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Digital asset manager Grayscale wants to convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF. The company said it has 14 other investment products that it is willing to convert into a Bitcoin ETF.

World’s largest digital asset manager Grayscale is making an aggressive push for a spot Bitcoin ETF. On Tuesday, October 19, Grayscale announced that NYSE Arca has submitted form 19b-4 to the US Securities and Exchange Commission (SEC) for converting the world’s largest Bitcoin fund – Grayscale Bitcoin Trust (GBTC) – to a spot Bitcoin ETF.

The development comes on the same day as the SEC clearing the first bitcoin futures ETF from ProShares. However, the recent SEC approval is only for the futures-linked Bitcoin ETF. But Grayscale wants to launch a Bitcoin ETF that directly tracks the underlying asset i.e. the BTC price.

While the SEC has given a green light to Bitcoin futures ETF, it still remains skeptical about a spot Bitcoin ETF. With its recent filing, Grayscale could possibly become the first in getting a spot Bitcoin ETF to the market. Speaking of the development, Michael Sonnenshein, CEO of Grayscale Investments said:

“Since 2013, the Grayscale team has worked tirelessly to build the world’s largest, most transparent Bitcoin investment vehicle, GBTC, while partnering with policymakers and regulators to build familiarity and trust in Bitcoin, blockchain, and the underlying Bitcoin market. In becoming the first crypto SEC reporting investment vehicle, GBTC has helped move the entire digital currency ecosystem forward. As we file to convert GBTC into an ETF, the natural next step in the product’s evolution, we recognize this as an important moment for our investors, our industry partners, and all those who realize the potential of digital currencies to transform our future.”

Grayscale’s Sprint with Bitcoin Fund: GBTC to Become an ETF

Grayscale launched its Bitcoin Trust (GBTC) back in 2013 and is now the largest Bitcoin fund in the market. The Grayscale Bitcoin Trust (GBTC) holds nearly 3.4% of the world’s total Bitcoin supply with more than $40.5 billion in net assets under management.

Now, the company is willing to convert this same fund to an ETF. Besides, Grayscale is also willing to convert 14 other investment products into ETFs. Dave LaValle, Global Head of ETFs at Grayscale Investments said:

“At Grayscale, we believe that if regulators are comfortable with ETFs that hold futures of a given asset, they should also be comfortable with ETFs that offer exposure to the spot price of that same asset. GBTC proves that there’s strong investor demand for physically-backed Bitcoin investment vehicles. We are proud to partner with NYSE Arca to submit today’s filing, folding Bitcoin into the familiar protections of an ETF wrapper, and ultimately providing investors with a choice in how they want to allocate their Bitcoin exposure.”

The recent optimism surrounding Bitcoin ETFs has fueled a rally in the BTC price. Since the beginning of October this month, BTC has already gained more than 45% and is currently trading above $64,000 levels.

Bitcoin News, Cryptocurrency news, Funds & ETFs, Market News, News
Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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