Grayscale awaits SEC nod to file claim
Grayscale, the leading cryptocurrency fund manager, has officially confirmed its intention to file an application with the United States Securities and Exchange Commission to convert its Bitcoin Trust into a Bitcoin cash exchange-traded fund.
In a long thread, Jennifer Rosenthal, the company’s communications director, said Grayscale would be ready to seek SEC approval as soon as there was a “clear” and “formal” indication from the regulator.
– Jennifer Rosenthal (@jenn_rosenthal) October 18, 2021
CNBC broke the news last week, citing people familiar with the matter.
Digital Currency Group CEO Barry Silbert also began teasing the conversion ahead of the official announcement, urging his subscribers to “stay tuned.”
The worst of cases
As reported by U.Today, ProShares revealed earlier today that its Bitcoin futures ETF will begin trading on the New York Stock Exchange under the ticker BITO on Tuesday. Instead of the underlying asset, the fund will provide traders and investors with exposure to CME Bitcoin futures.
Silbert initially criticized the approval of an ETF based on futures contracts. Market analysts say futures ETFs are too expensive and complicated.
Grayscale Bitcoin Trust shares are currently trading at a 15.5% discount, with the launch of futures ETFs further weakening demand for the $ 38 billion fund.
In their research note released earlier this week, analysts at Bloomberg Intelligence estimated that approving futures ETFs would be the “worst case” for Grayscale:
Failure to convert for an extended period, amid potential competition from recently launched futures-based Bitcoin ETFs, could erode demand for GBTC and widen its discount.