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On Monday, the digital currency asset manager Grayscale Investments announced intentions to file for a bitcoin exchange-traded fund (ETF) when permissible.In relation to its crypto trust products, the subsidiary of Digital Currency Group says it was always the company’s intent to convert them into an ETF.
Transforming Grayscale’s $34 Billion Bitcoin Trust Into an Exchange-Traded Fund
It looks like Grayscale Investments is planning to join the race of firms looking to launch an exchange-traded fund (ETF) in the United States.By leveraging Grayscale’s blog, the company announced its bitcoin ETF intentions on April 5, 2021.Established in 2013, Grayscale Investments launched the firm’s bitcoin trust (GBTC) and today GBTC has $34 billion in assets under management (AUM).Besides Grayscale’s main product, the business is the world’s largest asset manager for cryptocurrencies.
An announcement by Grayscale bitcoin trust details a growing number of questions about the prospect of a Bitcoin ETF in the U.S. The company’s announcement details "clarity" and the implication "for Grayscale Bitcoin Trust GBTC and all other companies in the Bitcoin industry."“First and foremost we wish to make clear: we are 100% committed to converting GBTC into an ETF.”
GBTC's move following its public listing and its conversion to an SEC-reporting company is a natural progression, according to Grayscale.“These were each groundbreaking achievements and brought greater transparency, regulatory clarity, and reporting standards for the investment community,” Grayscale said.
Grayscale Is Committed to Converting GBTC Into an ETF
The company also discussed when it applied for a bitcoin exchange-traded fund back in 2016 and had a lot of conversations with the U.S. Securities and Exchange Commission (SEC)."Ultimately, we abandoned our application because of regulatory uncertainties related to the digital assets market,” Grayscale said reminiscing about the experience.
A digital currency asset manager has concluded, “We remain committed to converting GBTC into an ETF although the timing would be based on the prevailing regulatory environment.”“When GBTC converts to an ETF, shareholders of publicly-traded GBTC shares will not need to take action and the management fee will be reduced accordingly.”
What are your thoughts on Grayscale's decision to open a bitcoin exchange-traded fund (ETF) in the U.S.?Let us know what you think about this subject in the comments section below.
