World’s leading asset management company, Grayscale has announced that two of its products – Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE) can now be traded via the Robinhood app.
Both of these Grayscale products allow investors to buy and sell these trusts like stocks without actually having to buy Bitcoin and Ethereum. The price of GBTC and ETHE are tied to the price of the underlying cryptocurrency. Although they don’t trade on a 1:1 basis.
As of yesterday, ETHE is selling at a discount of 26.18% and GBTC at a discount of 25.5%. Grayscale charges a management fee from the investors for the custody of these trusts.
GBTC, with $24.6 billion in assets under management, is the largest investment vehicle dedicated to Bitcoin. ETHE on the other hand, has over $329 million in assets.
Grayscale already has an open application with the U.S. Securities and Exchange Commission to convert its $30 billion Bitcoin trust into an exchange-traded fund(ETF). The structure of an ETF allows it to be traded at a price much closer to the underlying asset. The deadline for reaching a final choice is July 6.
The management company’s representative stated that if the SEC denies their application for a physically-backed ETF, Grayscale will respond legally, including the possibility of filing a lawsuit.