Grayscale wants to turn its bitcoin mutual fund into an ETF

The firm Grayscale, which manages digital currency assets, again announced its intention to convert its investment fund into a bitcoin exchange-traded fund (ETF).

The information was disclosed on April 5, 2021 in a statement published in a blog post. Grayscale indicates that the roadmap for its Grayscale® Bitcoin Trust (GBTC) fund is on track to be registered to, in a short time, become an exchange-traded fund (ETF). The firm also has the same plan for Grayscale® Ethereum Trust (ETHE).

However, the company founded in 2013 did not offer more details of the steps taken before the Securities and Exchange Commission of the United States (SEC) to crystallize this initiative or in the term in which it will be finalized.

In accordance with the US-based company’s roadmap, each cryptocurrency fund goes through various stages of development. The first is the “private placement” phase, in which the funds are only available for sale and purchase in OTC agreements with the company.

While the second category is for stocks that are listed on secondary stock markets and become negotiable for the public. The press release notes that this category includes trust funds for bitcoin cash (BCH), litecoin (LTC) and Ethereum Classic (ETC).

By last, more advanced trusts achieve “SEC reporting” status, which commits them to the periodic disclosure of their balance sheets and operations before the Securities and Exchange Commission. Currently, only Bitcoin and Ethereum trusts are reporting to the SEC.

Grayscale ensures that your short-term GBTC and ETHE funds will be converted to ETFs. Source: Grayscale.

The most coveted end state is that the product becomes an ETF or exchange-traded fund. It is an investment instrument whose main characteristic is that it is traded on secondary securities markets. It operates like a stock that can be bought and sold with the same ease and as many times as you want throughout the day. Grayscale’s bitcoin fund currently manages assets of $ 46.6 billion.

Grayscale is confident in its commitment to the SEC

Grayscale is considered one of the leading providers of cryptocurrency exposure in traditional markets, and operates several trust funds with 13 cryptocurrencies.

The press release notes that Grayscale first submitted an application for a Bitcoin ETF in 2016 and spent most of 2017 in conversations with the SEC without getting his proposal approved.

Remember that these firms have subsequently submitted applications for bitcoin ETFs in the form of S-1 or 19b-4 to the SEC. Grayscale is confident in its current positioning and commitment to the SEC.

Today, we remain committed to turning GBTC into an ETF, although timing will be driven by the regulatory environment. When GBTC becomes an ETF, holders of publicly traded GBTC shares will not have to take action and the management fee will be reduced accordingly.

Grayscale

The company adds in the statement that “GBTC is the world’s largest and most liquid bitcoin investment product.” He compares it with other products traded on commodities exchanges and ensures that it ranks second in assets managed, only behind SPDR Gold Trust (GLD).

Grayscale seeks ETF experts

Grayscale has been trying to launch its ETF on the stock market for several years. However, last month he was more decisive, announcing the search for ETF experts for his 650,000 bitcoin fund.

As CriptoNoticias reported on March 12, 2021, this could indicate the fund’s intention to seek SEC approval to launch its own ETF.

The company announced a list of vacancies, most of them executive and managerial positions, followed by the initials ETF. They are looking for a relationship manager with authorized ETF participants; ETF financial reporting manager; ETF financial support manager; ETF Marketing Manager; ETF Product Development Specialist; and director of ETF sales; Head of ETF Compliance; specialist in creation and exchange of ETFs.