Grayscale plans to file to convert the world's largest bitcoin fund into a spot ETF

Image source: Internet

Author: Amy Liu

Image source: Internet

Author: Amy Liu

According to CNBC reports, people familiar with the matter revealed that Grayscale Investments plans to submit an application earlier this week to convert the world's largest bitcoin fund into a spot ETF.

Once the U.S. Securities and Exchange Commission (SEC) approves a futures-based bitcoin ETF, Grayscale intends to file with the SEC immediately, the person said.

According to a revised prospectus filed by asset management company ProShares on Friday, its bitcoin futures-based exchange-traded fund (ETF) "ProShares Bitcoin Strategy ETF" is scheduled to trade on the New York Stock Exchange Arca on Monday (October 18). Listed, the transaction code is BITO.

It will be the first crypto futures-based ETF product to be listed on a U.S. exchange, and while it won’t offer a vehicle to invest directly in the bitcoin spot market, it will provide investors with indirect exposure in the form of an ETF.

Analysts pointed out that in the case of such product registration, if the SEC does not raise objections or intervene within 75 days from the first submission of the application, the product can be clearly listed.

If approved, Grayscale's ETF would further expand the nascent crypto asset class' status as a recognized investable asset.

A bitcoin futures ETF is about to debut, and while significant, some crypto investors see the step as insufficient because it will be tied to a derivatives contract traded on the Chicago Mercantile Exchange rather than to actual bitcoin.

However, Grayscale's spot bitcoin application represents an investment backed by bitcoin, not a derivative related to it.

Bitcoin held by Grayscale represents a significant portion of global Bitcoin holdings. As of Friday, GBTC had $38.7 billion in assets under management.

The firm is a pioneer in the crypto investing space, enabling institutional investors such as Ark Invest's Cathie Wood to bet on bitcoin. The company originally made an open application for the ETF in January 2017. The company withdrew the filing in October of that year after the SEC said it wasn't too happy with the bitcoin market.

Of course, the SEC still has the option to delay or deny Grayscale's application.

This article is from Bitpush.News, reproduced with authorization.