Digital Asset Manager Grayscale Says It Is ‘100% Committed To Converting GBTC Into An ETF’
On conversion of GBTC into an ETF, the holders of GBTC shares won’t need to take any action, and the management fee, currently at 2%, will be reduced. Meanwhile, the world’s first Bitcoin ETF (BTCC) holds 16,462 BTC without a single outflow since its debut.
Today, the world’s largest digital asset manager clarified its intentions for a bitcoin ETF: they are fully committed to converting its Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund (ETF).
Launched in 2013, GBTC is currently a publicly-traded Bitcoin fund in the US and an SEC-reporting company.
Today, with $34 billion in AUM, GBTC only stands behind SPDR Gold Trust in terms of global commodity ETPs. With $2.6 billion in weekly volume, it stands in third place behind only GLD and iShares Silver Trust.
For several years now, Grayscale has been examining ETFs closely from both a commercial and regulatory perspective, said the fund in its official announcement on Monday.
Grayscale actually submitted an application for a Bitcoin ETF in 2016 and has been in conversation with the SEC since then. But they later withdrew the application because the regulatory environment for digital assets wasn’t advanced enough. So far, not a single Bitcoin ETF has been approved either.
This year, however, many applications for the same have been filed, and the market has high expectations from the SEC, especially with President Joe Biden’s nominee for the SEC chair Gary Gensler. The company said,
“While several firms have submitted Bitcoin ETF applications in the form of an S-1 or 19b-4 to the SEC, we are confident in our current positioning and engagement with the SEC.”
When GBTC converts to an ETF, the company says, the holders of GBTC shares won’t be needed to take any action. Also, the management fee, currently at 2%, will also get reduced accordingly.
Since late Feb., GBTC’s coveted premium has been running in the negative, which has been attributed to the rise of other products, including several Bitcoin ETFs trading in Canada.
The first-ever Bitcoin ETF from Purpose Investments (BTCC) currently holds 16,462 BTC, with $1.22 billion in AUM. Launched in mid-February, the Purpose Bitcoin ETF has seen only inflows, and not a single outflow has been recorded yet.