Some of our regular readers may be aware of the fact that GBTC (The Bitcoin Investment Trust) is a novel investment vehicle that allows people to make regulated BTC purchases using a secure framework that is designed to provide investors with certain monetary guarantees.
In that sense, one can even think of GBTC as being the closest thing to an exchange-traded fund (ETF) — so much so that a single GBTC share is currently trading at a price point of $6.28 (or $6,280 per Bitcoin) on various OTC markets.
Comparatively speaking, we can see that BTC is currently being sold for a price of around $5,200 on a host of popular exchange platforms such as Coinbase, Binance, etc — thereby showcasing a massive premium margin when compared to GBTCs spot market value.
More On The Matter
For more than 12 months now, the global crypto community has been hoping for the approval of a bitcoin exchange-traded fund (ETF) by the U.S. SEC. However, time and again the regulatory body has cited a number of issues that have prevented a lot of ETF proposals from materializing.
In this regard, it should be pointed out that many of the fears that have previously been outlined by the SEC in relation to ETFs have now been addressed by countries such as Japan and South Korea — both of whom have revised their economic frameworks to help weed out issues of fake volume portrayals, poor exchange transparency, etc.
With that being said, Hester Peirce, a commissioner for the SEC recently went on record to state the following:
“Don’t hold your breath. I do caution people to not live or die on when a crypto or bitcoin ETF gets approved. You all know that I am working on trying to convince my colleagues to have a bit more of an open mind when it comes to [crypto]. I am not as charming as some other people,”.
Other Details Worth Pointing Out
One of the core purposes of an ETF is to allow investors to put their money into an asset/market domain that is protected by a regulatory ecosystem. As things stand, many investors view GBTC as well as the ETC Investment Trust as being the most potent alternatives to an ETF.
On the matter, Three Arrows Capital CEO Su Zhu recently spoke with a media outlet claiming that he knew a number of people who were buying Ethereum Classic via the ETC Trust at a
“175% premium over the currency’s existing spot price”.
He then went on to add:
“Sad to see investors allowed to buy ETCG (Grayscale Ethereum Classic Trust) at 175% premium over spot ETC. Meanwhile, there’s no $BTC ETF even though that would give investors a way to avoid paying absurd premiums and to access the underlying liquidity,” he said.
In closing out this piece, it should be pointed out that the SEC will most likely take some time before it finally approves of a Bitcoin ETF. However, with companies such as Bitwise Asset Management looking to actively tackle many of today’s existing financial issues (such as the propagation of fake crypto trade volumes), it would not be surprising to see the SEC soften its stance towards the alt-currency sector sometime within the next 12-24 months.