December 4, 2021

Grayscale plans to convert Bitcoin trust to ETF

Grayscale plans to convert Bitcoin trust to ETF

Grayscale is preparing a proposal to convert the world's largest bitcoin fund into an ETF, according to CNBC.

The largest in the world A digital asset manager has made no secret of his intention to seek approval for a Bitcoin-based spot ETF once the futures ETF is approved by the commission.

The Grayscale ETF will be backed by actualunits of cryptocurrency, not derivatives contracts. However, the SEC prefers futures ETFs because it can fit them under the Investment Company Act of 1940. The SEC previously said it had no plans to approve a purely spot Bitcoin ETF.

Grayscale CEO Mike Sonnenstein believes that spot funds have the upper hand and should be launched before futures.

Some analysts predict that GrayscaleThe $ 38.7 billion Bitcoin Trust (GBTC), which is already listed on public stock markets, has no chance of getting approval anytime soon for its current plan to convert to an ETF.

After filing an application, the SEC will have 75 days to review it.

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