Grayscale Bitcoin Trust Files to Convert to a Spot Bitcoin ETF

Following the first Bitcoin ETF to trade on an exchange, Grayscale says it has filed to migrate its Bitcoin Trust to a spot Bitcoin ETF [exchange traded fund] in partnership with NYSE Arca. Grayscale has long messaged its goal of migrating its Trust to an ETF.

The ProShares Bitcoin Strategy ETF (NYSE:BITO) started trading today. Yet, this ETF is based on Bitcoin futures and not the spot market.

Grayscale says their decision to file publicly now is based on the regulatory clarity associated with the SEC’s decision to permit a Futures-based ETF, along with some of its other publicly traded crypto vehicles.

“Our hope and expectation is that if regulators are comfortable with ETFs that offer exposure to BTC in the form of Futures, they are sufficiently comfortable with the underlying asset to approve a spot ETF for the same underlying asset. If the ETF is approved, current holders of GBTC will not need to take proactive action; the shares would automatically be converted into shares of the ETF.”

Currently, the Grayscale Bitcoin Trust trades on OTC Markets. A migration to a regulated exchange may broaden its appeal to a bigger market while compelling the Trust to lower its fees for investors.

Michael Sonnenshein, CEO of Grayscale Investments, stated:

“Since 2013, the Grayscale team has worked tirelessly to build the world’s largest, most transparent Bitcoin investment vehicle, GBTC, while partnering with policymakers and regulators to build familiarity and trust in Bitcoin, blockchain, and the underlying Bitcoin market. In becoming the first crypto SEC reporting investment vehicle, GBTC has helped move the entire digital currency ecosystem forward. As we file to convert GBTC into an ETF, the natural next step in the product’s evolution, we recognize this as an important moment for our investors, our industry partners, and all those who realize the potential of digital currencies to transform our future.”

Dave LaValle, Global Head of ETFs at Grayscale Investments, said there is strong investor demand for physically-backed Bitcoin investment vehicles.

“We are proud to partner with NYSE Arca to submit today’s filing, folding Bitcoin into the familiar protections of an ETF wrapper, and ultimately providing investors with a choice in how they want to allocate their Bitcoin exposure.”


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