Grayscale awaits SEC nod to file claim
Leading cryptocurrency money manager Grayscale has officially confirmed its plans to file an application with the U.S. Securities and Exchange Commission its order to convert its Bitcoin Trust into a spot Bitcoin exchange-traded fund.
In a long thread, Jennifer Rosenthal, the company’s communications director, said Grayscale would be ready to seek SEC approval as soon as there was a “clear” and “formal” indication from the regulator.
Last week, CNBC broke the news, citing people familiar with the matter.
Digital Currency Group CEO Barry Silbert also began teasing the conversion ahead of the official announcement, urging his subscribers to “stay tuned.”
The worst-case scenario
As reported by U.Today, ProShares revealed earlier today that its Bitcoin futures ETF will start trading on the New York Stock Exchange under the BITO ticker on Tuesday. Instead of the underlying asset, the fund will provide traders and investors with exposure to CME Bitcoin futures.
Silbert was critical of approving a futures-based ETF first. Market analysts say futures ETFs are too expensive and complicated.
Shares of Grayscale Bitcoin Trust are currently trading at a 15.5% discount, with the launch of futures ETFs further weakening demand for the $38 billion fund.
In their research note released earlier this week, analysts at Bloomberg Intelligence estimated that approving futures ETFs would be the “worst case” for Grayscale:
The inability to convert for an extended period, amid potential competition from newly launched futures-based Bitcoin ETFs, could erode demand for GBTC and widen its discount.
