Grayscale Investments, the digital-asset manager, plans to file to convert its Bitcoin Trust into a spot ETF “early next week,” CNBC reports, citing a person familiar with the matter.
According to the channel’s source, the company will file with the SEC when the agency approves the futures ETF. Earlier, last Friday the SEC approved ProShares to launch this product.
On plans for Grayscale to convert Bitcoin Trust (GBTC) into an exchange-traded fund first emerged in April. At the time, the company said its products are at different stages of their lifecycle, but “each of them will be converted into an ETF in the future.”
GBTC is the largest trust under management. As of October 15, its assets under management amount to $38.68 billion. Aggregate AUM is estimated at $52.6 billion.
10/15/21 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
Total AUM: $52.6 billion$BTC $BAT $BCH $LINK $MANA $ETH $ETC $FIL $ZEN $LTC $LPT $XLM $ZEC $UNI $AAVE $COMP $CRV $MKR $SUSHI $SNX $YFI $UMA $BNT $ADA $SOL pic.twitter.com/H095pF7htL
— Grayscale (@Grayscale) October 15, 2021
In Grayscale’s case, the instrument would be a spot ETF, whose underlying asset would be bitcoin itself, not a derivative. Many experts consider such a vehicle more effective. For example, such a view is придерживается Morgan Creek Digital co-founder Anthony Pompliano.
Earlier, Bloomberg analysts also criticised futures ETFs, which are preferred by SEC Chair Gary Gensler. They said such structures “do not track Bitcoin efficiently,” and therefore cannot beat spot funds on returns.
In Gensler’s view, futures-based bitcoin ETFs are more reliable, as they rely on the Investment Company Act of 1940.
Grayscale CEO Michael Sonnenshein, by contrast, thinks the regulator is wrong to approve futures-based funds ahead of spot ones. He called the SEC’s stance “short-sighted” and said such a product would only harm investors.
In a note, Valkyrie Investments’ chief investment officer Stephen McClurg noted that, judging by Gensler’s remarks, a ‘purely spot bitcoin ETF’ will not receive approval in the near term.
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