The grayscale investments revealed that he was fully committed to launching a Bitcoin exchange-traded fund (ETF) as he finds more ways for investors to gain exposure to the cryptocurrency market.
Grayscale Investments said it was 100% committed to launching a Bitcoin ETF. The digital asset management firm said this in a blog post yesterday, adding that it intended to convert its Grayscale Bitcoin Trust (GBTC) into a Bitcoin ETF.
“First of all, we want to make it clear: we are 100% committed to turning GBTC into an ETF,” the firm said. Grayscale went on to narrate its journey to become perhaps the premier cryptocurrency asset management company.
According to Grayscale, it was the first company to launch a publicly traded Bitcoin fund in the United States. It was also the first and only company to turn a Bitcoin fund into a SEC reporting company. Currently, Grayscale’s GBTC and Grayscale Ethereum Trust (ETHE) are the two crypto funds in the world that are SEC reporting companies.
The company intends to convert its products into exchange-traded funds. Grayscale stated that “Every Grayscale product is in various stages of this life cycle, and our intention has always been to convert these products into an ETF where permitted.”
While most people believe that this is the first time that Grayscale is discussing the possibilities of a Bitcoin ETF, the firm said that it had been monitoring the situation closely from a business and regulatory perspective for several years.
The digital asset management firm said it had previously submitted an application for a Bitcoin ETF. “Grayscale first submitted an application for a Bitcoin ETF in 2016 and spent most of 2017 in discussions with the SEC,” the post added.
However, Grayscale withdrew its application because it believed that the cryptocurrency regulatory environment had not matured enough at the time. The firm has been communicating with the Securities and Exchange Commission and now intends to convert its GBTC into a Bitcoin ETF.
When GBTC is converted to a Bitcoin ETF, shareholders of the publicly traded GBTC shares will not be required to do anything, and the management fee will be reduced accordingly depending on the company. The Bitcoin ETF battle is heating up in the United States.
The SEC had previously rejected numerous applications for Bitcoin ETFs. However, there is renewed optimism within the crypto space that the new regime will approve an ETF. So far, the SEC has received six applications for Bitcoin ETFs, including those from WisdomTree, VanEck, and Fidelity.