Grayscale Investments has confirmed its plan to convert its Bitcoin Trust (GBTC) into a Bitcoin Exchange Traded Fund (ETF). “NYSE Arca will file a document called 19b-4 to convert GBTC into an ETF,” said Grayscales official.
GBTC becomes Bitcoin ETF
Grayscale Investments has confirmed that it will convert its flagship product Grayscale Bitcoin Trust (GBTC) into a Bitcoin Exchange Traded Fund (ETF). Jennifer Rosenthal, Grayscale’s communications director, tweeted on Monday:
Today I am pleased to announce that Grayscale will file for the GBTC to be converted into an ETF as soon as the SEC provides a clear, formal lead.
She described, “Greyscale’s position has always been clear: we are 100% committed to converting GBTC – and our family of products – into ETFs once the SEC has formally expressed its required comfort with the underlying Bitcoin market.”
Grayscale’s communications director added that there are positive developments within the SEC, including the approval of a futures-based Bitcoin ETF, which is expected to start trading Tuesday. Proshares’ Bitcoin Futures ETF is traded on the NYSE under the ticker symbol “BITO”.
Rosenthal stated that this means:
Once there is official and verifiable evidence of the SEC’s convenience with the underlying Bitcoin market – likely in the form of a Bitcoin futures ETF deemed effective – the NYSE Arca will file a document called 19b-4 to convert GBTC into an ETF .
The company’s total assets under management (AUM) as of October 18 are $ 53.5 billion, with GBTC holding approximately $ 39.77 billion.
Grayscale CEO Michael Sonnenshein told CNBC on Monday:
There is great excitement that regulators are finally allowing bitcoins to go anywhere on a national stock exchange … If you look at the structure of a bitcoin futures product, it will have an impact on investors.
Editor’s note (Oct 19, 2021, 9:50 p.m.): NYSE Arca has filed Form 19b-4 with the SEC to convert GBTC into a Bitcoin Spot ETF.
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