Grayscale files to convert its GBTC to a Bitcoin ETF


The number of investment firms applying for Bitcoin ETFs continues to grow as more financial institutions seek entry into the crypto space

Grayscale Investments, the world’s leading digital currency asset management firm, announced yesterday that NYSE Arca had filed Form 19b-4 with the United States Securities and Exchange Commission (SEC). The application is to convert Grayscale’s leading product, the Grayscale Bitcoin Trust (GBTC), into a Bitcoin spot exchange-traded fund (ETF).

Grayscale announced this latest development via a press release yesterday. The investment firm said it has been working hard since 2013 to convert its GBTC into the world’s largest, most transparent Bitcoin investment vehicle. Grayscale said it is committed to converting its GBTC and other investment products into ETFs.

Michael Sonnenshein, CEO of Grayscale Investments, stated that “As we file to convert GBTC into an ETF, the natural next step in the product’s evolution, we recognize this as an important moment for our investors, our industry partners, and all those who realize the potential of digital currencies to transform our future.”

This latest development comes a few days after the US SEC approved the first Bitcoin futures ETF application filed by ProShares. Grayscale is filing for a Bitcoin spot ETF. However, the US SEC has been reluctant to approve ETFs that track Bitcoin’s spot price for fear of market manipulation.

SEC chair Gary Gensler has stated on numerous occasions that the regulator is more comfortable with Bitcoin futures ETFs than Bitcoin spot ETFs. However, Dave LaValle, Global Head of ETFs at Grayscale Investments, argued that if the SEC is comfortable with ETFs that hold futures of a given asset, then it should also be comfortable with ETFs that provide exposure to the spot price of the same asset.

Bitcoin has been rallying over the past few days and is now closing in on its all-time high price. At the time of writing, BTC is trading at $63,945 and could soon reach its all-time high above $64,000 if the momentum is maintained.

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