DCG chief confirms plans to convert Grayscale’s Bitcoin Trust into an ETF

Barry Silbert, founder and CEO of Digital Currency Group (DCG), the parent company of Grayscale Investments, confirmed that the bitcoin trust GBTC would be converted into a publicly traded exchange-traded fund (ETF).

The trust is Grayscale’s largest under management. As of October 15, its assets under management stood at $38.68 billion. The company’s total AUM is estimated at $52.6 billion.

Earlier, CNBC, citing its own sources, reported that the firm planned to file with the U.S. Securities and Exchange Commission (SEC) an application to convert GBTC into an ETF “next week”.

It was proposed that the documents would be sent after the ETF regulator approved the first cryptocurrency futures-based product.

On Friday, October 15, the SEC did not provide a timely response to ProShares’ prospectus. Technically this amounted to a ‘quiet’ approval of the application.

It is planned that ProShares Bitcoin Strategy ETF, under ticker BITO, will begin trading on the New York Stock Exchange on October 19.

“I think there is a lot of excitement for regulators finally allowing something related to Bitcoin on a national securities exchange,” commented Grayscale CEO Michael Sonnenshein on CNBC.

Plans to convert the Bitcoin Trust to an ETF first emerged in April. The product would be a spot fund, with the cryptocurrency itself as the underlying asset rather than a derivative.

As reported in August, SEC Chair Gary Gensler said the regulator would consider Bitcoin ETFs if they were based on Chicago Mercantile Exchange futures and complied with the Investment Company Act of 1940.

Subsequently he confirmed the criteria set for the products.