On Monday, e-money asset manager Grayscale Investments announced plans to apply for a bitcoin exchange-traded fund (ETF), if approved. Subsidiary Digital Currency Group (DCG) says that when it comes to its crypto-trust products, the company has always strived to convert them into ETFs.
bitcoin trust converts $34 billion intoexchange traded fund
It looks like Grayscale Investments wants to join the race of companies looking to launch an exchange-traded fund (ETF) in the United States. Grays announced on the 5th. April 2021 via the company’s blog, the intention to create a bitcoin ETF. Grayscale Investments was founded in 2013 and launched the Bitcoin Trust (GBTC). Today, GBTC has $34 billion in assets under management (AUM). Grayscale also offers a number of other public crypto products, and the company is the largest manager of digital currency assets in the world.
Questions about the possibility of a bitcoin ETF in the US have increased in recent months, and we wanted to take this opportunity to provide clarity and context on what such a development would mean for Grayscale and for Grayscale Bitcoin Trust GBTC, the company said in a statement. First of all, we want to clarify something: We are 100% ready to convert GBTCs into ETFs.
Grayscale notes that this is a natural progression for GBTC, as it was the first publicly traded bitcoin fund in the US and it was also able to convert the fund into an SEC reporting company. These are groundbreaking advances that have brought greater transparency, regulatory clarity and disclosure standards to the investment community, Grayskal said.
Establishing a grey scale for the conversion of ICSDs into ETFs.
The company also talked about it when it applied for a tradable bitcoin fund in 2016 and had numerous conversations with the US Securities and Exchange Commission (SEC). Ultimately, we withdrew our application because we felt that the regulatory environment for digital assets had not progressed to the point where such a product could be brought to market, Grayscle recalls.
We remain committed to converting GBTCs into ETFs today, but the timing will depend on the regulatory environment, the digital currency asset manager summarized. If GBTC is converted into an ETF, the public shareholders of GBTC will not have to do anything and management fees will be reduced accordingly.
What do you think of Grayscale’s announcement that it plans to launch a bitcoin ETF in the US? Let us know what you think in the comments below.
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