Grayscale Investments LLC along with NYSE (New York Stock Exchange) filed to convert the world’s largest Bitcoin fund into an ETF, requesting approval as it faces intense competition.
Grayscale, which holds the largest cryptocurrency directly, has yet to be approved by the Securities and Exchange Commission.
CEO Michael Sonnenshein said the firm is “100% committed” to turning GBTC into an ETF as soon as U.S. regulators approve it.
Sonnenshein said, “We are of the firm belief that because the futures and the spot pricing for Bitcoin are inextricably tied, that we have the willingness to allow or clear the way for a Bitcoin futures ETF in the market, and also clear the way for a spot ETF.”
According to Grayscale, GBTC currently holds 3.4% of the bitcoin supply worldwide.
The fact that GBTC trades at a discount is known, and investors can take advantage. The company has also kept its commitment to converting the fund into an ETF, which could help eliminate the discrepancy.
The process of issuing and redeeming shares of ETFs is controlled by specialized traders known as authorized participants, but this process does not exist for trusts like GBTC.
Over the past 12 months, the number of outstanding shares of the fund has increased dramatically.
Dave LaValle, Grayscale’s global head of ETFs, said, “Our investors have an overwhelming desire for a spot-Bitcoin ETF, so we remain committed to that conversion.”
The move follows the SEC clearing the way on Friday for bitcoin futures ETFs to trade, with ProShares Bitcoin Strategy ETF scheduled to start trading on the New York Stock Exchange on Tuesday. ProShares made history with the $1 billion trading volume on the first day of its debut.
