Grayscale, a major player in digital asset management, has expressed enthusiasm about the possibility of converting the Grayscale Bitcoin Trust (GBTC) into a Bitcoin ETF. This move could provide significant benefits to investors by eliminating the current 8.09% discount, worth approximately $1.89 billion, bringing GBTC’s price more closely aligned with Bitcoin’s actual value.
The company’s Chief Legal Officer Craig Salm and Chief Financial Officer Edward McGee revealed the details. Pending approval from the United States Securities Exchange Commission, GBTC will transition from its current platform, OTCQX, to the NYSE Arca exchange. This move is intended to better synchronize GBTC’s shares with the actual Bitcoin price and introduce a streamlined mechanism for investors to easily create or redeem shares.
Eric Balchunas, ETF analyst at Bloomberg observed Notable reliance on Regulation M (Reg M) relaxations. He references past conversations that suggest the SEC could use Reg M to obstruct or delay certain proceedings, but does not confirm this. Balchunas noted the interesting timing of Regulation M being mentioned shortly after Grayscale’s meeting with the SEC, hinting at its potential significance or impact in the deliberations.
Related: SEC Requests Comments on Fidelity’s Spot Ether ETF Application
With Bitcoin (BTC) price currently at $39,481 and trading volume surging, increasing trader interest, the prospect of a spot Bitcoin ETF ensures investors can more accurately represent the value of Bitcoin through GBTC and institutional investors Provides a safer way to participate in Bitcoin. . These developments have already led to a 3% increase in the value of Bitcoin over the past 24 hours, with a notable surge in trading volume, sparking widespread interest.
Bloomberg ETF analyst James Seyffart said in a Nov. 28 post on Seyffart and his colleague Eric Balchunas put the odds of Bitcoin ETF approval at 90% by January 10, 2024, and with the two delays, “this may be a move to line up all applicants for potential approval in January.” It confirmed that there was a possibility. The deadline is the 10th of 2024,” Seyffart said.
magazine: Bitcoin ETF Optimist and WorldCoin Skeptic Gracie Chen: Hall of Flames