The company behind the greatest bitcoin (BTC) The world‘s fund, Grayscale, has today confirmed that it aims to convert its fund into a exchange-traded fund (ETF). Such an exchange tradable fund has several advantages, but no company has yet managed to get one approved.
The American Securities and Exchange Commission (SEC) has been obstructive until now. The regulator has concerns about market manipulation and investor safety. Should Grayscale be able to convert its fund into an ETF, in principle anyone with access to the stock exchange could invest in the fund. Now only accredited investors can do that.
That is also the advantage of an ETF. Large but also small investors could use it to invest in bitcoin without having to use all kinds of technical skills such as creating a wallet. They only need to own shares in the fund. This would make the market accessible to, among others, pension funds but also retail investors. This could ultimately lead to increased capital inflows into the bitcoin market.
Grayscale writes that it already submitted such an application in 2016. It eventually withdrew it because it expected US regulations to make the ETF impossible. The asset manager said, “Today, we remain committed to converting GBTC into an ETF, although timing is dictated by regulations.”
Grayscale’s Bitcoin Trust fund is the largest in the market. The latest available data shows that there is over $ 38.8 billion worth of bitcoin in the fund! There are also other funds for, among others ethereum (ETH) in litecoin (LTC). Altogether, all crypto in the funds is worth $ 46.6 billion.
04/02/21 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
— Grayscale (@Grayscale) April 2, 2021