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Follow the plan to convert the largest bitcoin fund into ETFs

Grayscale Investments will submit an application to the United States Securities and Exchange Commission (SEC) to convert Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund (ETF). This company is the world’s largest digital asset manager.

Today, October 18, 2021, Jennifer Rosenthal, Grayscale’s communications director, stated on Twitter that the company will make the request once the SEC gives clear formal directions. It notes that they are awaiting “official and verifiable evidence of the SEC’s comfort with the underlying bitcoin market.”

Rosenthal reported that, once they get this green light , The New York Stock Exchange (NYSE) will file Document 19b-4 to convert GBTC into an ETF . If applicable, the SEC would have 75 days from then to review the application and render its final verdict.

GBTC is the largest bitcoin (BTC) fund of the world. This means that, if the proposal is approved, the recognition of this cryptocurrency as an investment asset would be greatly expanded. Right now, a unit of GBTC is trading at $ 45.50, a figure that has increased almost 350% in the last year, following the price changes of bitcoin.

The price of GBTC follows the variation of bitcoin , your underlying asset, over the years. Source: Greyscale.

Grayscale Investments wants to convert all its projects into ETFs

The company also announced today that three of its trusts are now available in the OTC markets ( OTC). These are Grayscale Zcash Trust (ZCSH), Grayscale Stellar Lumens Trust (GXLM), and Grayscale Horizen Trust (HZEN). Also, as reported by CoinDesk, the company seeks to be funds under the regulation of the SEC.

This measure is part of the intention already announced by the company to convert all its private placement vehicles into ETFs . Grayscale currently has two trusts that are under the control of the SEC (bitcoin and ethereum) and nine publicly traded products.

Regarding the bitcoin ETF, which it has in place for a long time, it would be backed by real units of the cryptocurrency, in addition to derivative contracts such as futures. As CriptoNoticias reported, Grayscale Investments has been expressing the intention to do this repeatedly .

Grayscale’s announcement comes just one day before the first bitcoin-related ETF launches in the United States. This is the ProShares company fund. Unlike Grayscale, this is based on future contracts.

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Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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