Digital Asset Manager Grayscale Believes Approval for Bitcoin ETF is Inevitable
Digital asset manager Grayscale remains confident that a Bitcoin exchange-traded fund (ETF) will eventually be approved. The company is even considering converting its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF, pending approval from the U.S. Securities and Exchange Commission (SEC). Grayscale aims to have the fund listed on the NYSE Arca exchange if the conversion is successful.
In a blog post, Craig Salm, Chief Legal Officer at Grayscale, stated that they believe regulatory approval for a spot Bitcoin ETF in the U.S. is a matter of “when,” not “if.” He added that once approved, they would work with their partners to list GBTC on NYSE Arca. However, no specific timeline for the conversion was provided as timelines are inherently uncertain.
Analysts Speculate on SEC’s Decision Timeline
Some ETF analysts have made predictions about when the SEC might make a decision regarding pending applications. Bloomberg Intelligence analyst James Seyffart expects movement from the SEC between January 8 and January 10. It is worth noting that in 2022, Grayscale filed a lawsuit against the SEC, alleging unfair treatment in rejecting their application to convert GBTC into an ETF.
The judge ruled in favor of Grayscale in August, stating that the SEC must accept their application. The SEC was then ordered to officially review the ETF bid after indicating they would not appeal the decision. Recently, the SEC met with Grayscale CEO Michael Sonnenshein and CFO Edward McGee to discuss the proposed rule change to list and trade shares of GBTC on NYSE Arca.
Benefits of Converting to an ETF
Even without being a spot ETF, GBTC already represents over 3% of the total Bitcoin supply. However, it currently trades at an 8% discount to its net asset value. Converting to an ETF structure would allow Grayscale to closely track the price of Bitcoin. This would enable simultaneous creations and redemptions of shares in line with real-time price movements.
Hot Take: Grayscale Remains Optimistic for a Bitcoin ETF
Grayscale is optimistic about the future approval of a Bitcoin ETF in the U.S. They believe it is only a matter of time before regulatory authorities give the green light. While no specific timeline was provided, Grayscale is actively working towards converting their Grayscale Bitcoin Trust into an ETF and listing it on NYSE Arca. This move would allow them to more accurately mirror Bitcoin’s price movements. Analysts speculate that the SEC may make a decision on pending applications in the coming days. Overall, Grayscale’s persistence and progress indicate that they are committed to making a Bitcoin ETF a reality.
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