Grayscale, a renowned digital asset manager, continues to bet on the approval of a spot Bitcoin exchange-traded fund (ETF) in the United States. With concentrated efforts, the company seeks to convert its Bitcoin Trust (GBTC) – currently an OTCQX market trust – into a spot Bitcoin ETF. Its main objective is the listing of this ETF on the NYSE Arca exchange.
The company, led by industry experts, recently addressed the most common questions about the proposed conversion. Craig Salm, Chief Legal Officer, and Edward McGee, Chief Financial Officer, expressed contagious optimism. Salm highlighted that the question of regulatory approval is not “if”, but “when”. Grayscale plans, upon approval, to immediately transfer GBTC to NYSE Arca. However, the company avoided establishing a specific timeline, recognizing the unpredictability of regulatory processes.
In 2022, Grayscale faced regulatory challenges, including taking legal action against the SEC. The company alleged unequal treatment when its conversion request was rejected. Analysts such as James Seyffart of Bloomberg Intelligence have speculated on the SEC’s actions, predicting moves between January 8 and 10.
The long journey to Bitcoin ETF approval has involved significant progress, such as a court ruling in August that forced the SEC to consider Grayscale’s request. In October, the SEC decided not to appeal this decision and was ordered to formally review the ETF proposal. An SEC memo highlighted a meeting with Michael Sonnenshein, CEO of Grayscale, and Edward McGee, focused on NYSE Arca’s proposed rule change to list the Grayscale Bitcoin Trust.
Currently, GBTC represents more than 3% of the total Bitcoin supply, trading at an 8% discount to its net asset value. Grayscale sees the conversion to an ETF as a strategic step to more closely align with Bitcoin price movements.
While not yet an ETF in sight, Grayscale is ready to transition quickly following regulatory approval. Recent legal developments and official reviews emphasize the company’s commitment to navigating the complex regulatory landscape to achieve conversion of its ETF.
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