Grayscale confirms plans to turn GBTC into an ETF.

Spread the love

The fight to gain clearance from the Securities and Exchange Commission [SEC] in the United States is on, and no one wants to be left behind. Though Fidelity recently applied for SEC approval for a Bitcoin ETF, Grayscale has now announced its plans to turn its Bitcoin trust into an ETF.

As per its filing with the SEC, the crypto asset manager noted:

“In recent months there’s been a growing number of questions around the possibility of a Bitcoin ETF in the US, and we’d like to take the opportunity to provide clarity and context on what such a development would mean at Grayscale and for Grayscale® Bitcoin Trust (Symbol: GBTC).”

It reinstated that it is was “100% committed to converting GBTC into an ETF.”

Grayscale founded GBTC in 2013 and was a leader in offering digital assets to investors in the form of shares. As a result, it was the first corporation in the United States to introduce a publicly trading Bitcoin fund and the first one to turn a Bitcoin fund into an SEC-reporting company.

GBTC, on the other hand, has been selling at a negative premium in recent months. Since late February, the Bitcoin fund has traded slightly below the price of Bitcoin, which may suggest a decrease in demand for the currency. This was a shocking turn of events, given that institutional demand for BTC had remained high, and according to Grayscale’s third-quarter report in 2020, 80 percent of investment in the trust came from institutions.

RECOMMENDED READ:  Three times as many crypto personalities appear on the Forbes 2021 billionaires list as did last year.

Investors were unable to benefit from the negative premium, resulting in a decrease in GBTC production. ETFs, on the other hand, have continued to outperform GBTC in terms of investment potential.

Canada recently accepted three Bitcoin ETFs, and according to sources, they have successfully entered the GBTC market. The rivalry has been fierce as the SEC has received an increased number of applications for BTC ETF.

Grayscale filed for an ETF in 2016, but discontinued its submission. With investor perception shifting significantly, analysts expect the SEC will authorise the first ETF by the end of 2021, and at this stage, any asset management company will want to be the first.

 170 Interactions,  4 today

READ ALSO:
What are traders talking about Bitcoin’s latest all-time peak of $63K?

Bitcoin's price has surpassed $63,000 to set a new all-time record, but markets are divided in the short term. On Read more

TIME has come for Bitcoin, as a publication has agreed to keep BTC on its balance sheet.

Grayscale Investments had over $47.1 billion in funds under administration at the time of writing, with the AUM of its Read more

Why Bitcoin bulls remain upbeat despite primary BTC market metric falls to a new low.

Bitcoin's long-to-short ratio has fallen to a five-month low, but bears aren't biting, indicating that bulls remain in charge of Read more

What Exactly Is A Short Squeeze?

The term ‘risk' is one of the most widely used in the trading world. Betting on the success of any Read more

How to Trade Bitcoin Using the Money Flow Index

The Money Flow Index, or MFI, is a critical (but lesser-known) oscillator that can be used to perform technical analysis Read more

How enterprise blockchain applications are on the rise as companies becoming more aware of cryptocurrency.

Enterprise technologies that provide cross-border solutions and support the unbanked are gaining steam, and XRP, Stellar, and XinFin are seeing Read more

RECOMMENDED READ:  How big corporations will reveal Bitcoin "milestones" next week - President of NYDIG,
Decentralized finance is being tested by a major Thai bank.

Kasikornbank believes that asset-backed DeFi has the ability to generate economic value for Thailand. As part of its market growth Read more

Topps baseball card company and MLB working on official NFTs.

Topps Series 1 Baseball nonfungible coin collectibles will be released by the national card manufacturer in collaboration with Major League Read more

Physical Litecoin ETP will be listed on the German digital stock exchange.

Bitcoin and Ether ETPs are now available on the Deutsche Börse Xetra. The London-based ETC Group, which was responsible for Read more

How the use of blockchain technology has significantly increased the pace of rail trade between China and Europe.

Train cargos from China to Europe can now be shipped in days rather than months, thanks to the installation of Read more

“Crazy Cash”: Bitcoin turns yellow after a Simpsons episode depicts the BTC price surge to infinity.

The Simpsons, one of the most famous animated sitcoms in television history, has made a bullish bet for Bitcoin's worth. Read more

Leave a Reply

Contact Us