Grayscale Investment plans on filing an application to convert the world’s biggest bitcoin fund into a spot ETF early this week.
According to a report by CNBC, the investment firm is planning to file the application to the Securities and Exchange Commission(SEC) as quickly as the company allows efforts by competitors.Â
Once the filing is made, the SEC will have 75 days to review it. If approved, Grayscale’s ETF would be another step in the legitimization of the nascent crypto asset class. Grayscale’s ETF would be backed by actual units of the crypto, not simply linked via derivatives contracts such as futures.
The company already has a significant amount of the world’s bitcoin holdings for its BTC trust GBTC ticker. GBTC had $38.7 billion in assets under management as of late last week.
Grayscale’s move could be an attempt to force the SEC’s hand. The SEC could still choose to delay or reject the Grayscale application.
On Oct.16 SEC accepted the registration from the ProShares Bitcoin strategy ETF to list its shares on the New York exchange Arca. Though, SEC has not given any formal approval. This will give exposure to the crypto asset with future contracts.