Grayscale Investments has confirmed its plan to file for its bitcoin trust (GBTC) to be converted into a bitcoin exchange-traded fund (ETF). “The NYSE Arca will file a document called the 19b-4 to convert GBTC into an ETF,” stated Grayscale’s authorities.
GBTC to Become 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 Monday:
Today, I’m happy to verify that Grayscale will declare GBTC to be transformed into an ETF as quickly as there’s a clear, official indicator from the SEC.
She described: “Grayscale’s position has always been clear: we are 100% committed to converting GBTC — and our product family — into ETFs, when the SEC has formally expressed their requisite comfort with the underlying bitcoin market.”
The Grayscale interactions director included that there are favorable advancements within the SEC, consisting of the approval of a futures-based bitcoin ETF that is anticipated to start trading Tuesday. The bitcoin futures ETF from Proshares will trade under the ticker symbol “BITO” on the NYSE.
Rosenthal described that this suggests:
Once there’s authorities and proven proof of the SEC’s convenience with the underlying bitcoin market — most likely in the type of a bitcoin futures ETF being considered efficient — the NYSE Arca will submit a file called the 19b-4 to convert GBTC into an ETF.
The company’s total assets under management (AUM) is $53.5 billion as of Oct. 18, with GBTC holding about $39.77 billion.
Grayscale CEO Michael Sonnenshein informed CNBC Monday:
There is a great deal of enjoyment for regulators lastly permitting a bitcoin anything onto a nationwide securities exchange … When you look at the structure of a bitcoin futures product, there is going to be an impact to investors.
