Grayscale Confirms Plan to Convert GBTC Into Bitcoin ETF

GBTC to Become Bitcoin ETF

Grayscale Investments has confirmed that it will convert its flagship product, Grayscale Bitcoin Trust (GBTC), into a bitcoin exchange-traded fund (ETF). Jennifer Rosenthal, Grayscale’s communications director, tweeted Monday:

Today, I’m happy to confirm that Grayscale will file for GBTC to be converted into an ETF as soon as there’s a clear, formal indication from the SEC.

She described: “Grayscale’s position has always been clear: we are 100% committed to converting GBTC — and our product family — into ETFs, when the SEC has formally expressed their requisite comfort with the underlying bitcoin market.”

The Grayscale communications director added that there are positive developments within the SEC, including the approval of a futures-based bitcoin ETF that is expected to start trading Tuesday. The bitcoin futures ETF from Proshares will trade under the ticker symbol “BITO” on the NYSE.

Rosenthal explained that this means:

Once there’s official and verifiable evidence of the SEC’s comfort with the underlying bitcoin market — likely in the form of a bitcoin futures ETF being deemed effective — the NYSE Arca will file a document called the 19b-4 to convert GBTC into an ETF.

The company’s total assets under management (AUM) is $53.5 billion as of Oct. 18, with GBTC holding about $39.77 billion.

Grayscale CEO Michael Sonnenshein told CNBC Monday:

There is a lot of excitement for regulators finally allowing a bitcoin anything onto a national securities exchange … When you look at the structure of a bitcoin futures product, there is going to be an impact to investors.

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