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Writer's pictureIshita Bora

Grayscale Converts Its GBTC Trust Into ETF, Adds Exposure To Its Trusts



Grayscale, the institutional asset manager, has announced that it will be converting its GBTC Trust into an exchange-traded fund (ETF) once the United States Securities and Exchange Commission (SEC) has “comfort” with recently-approved Bitcoin futures ETFs.


It has been reported that Grayscale communications director Jennifer Rosenthal said that the asset manager would proceed with offering an ETF when “the SEC has formally expressed their requisite comfort with the underlying Bitcoin market.”


However, the offering would convert the asset manager’s Grayscale Bitcoin Trust (GBTC), first listed in 2013, into an ETF.


Rosenthal said:

“Once there’s official and verifiable evidence of the SEC’s comfort with the underlying Bitcoin market — likely in the form of a Bitcoin Futures ETF being deemed effective — the NYSE Arca will file a document called the 19b-4 to convert $GBTC into an ETF.”

The report said that the announcement follows ProShares announcement that its Bitcoin (BTC) futures-linked ETF would begin trading on the New York Stock Exchange under the ticker BITO, which started on October 19.


Likewise, filings with the SEC show the regulator has also accepted the registration request for shares of Valkyrie’s Bitcoin Strategy ETF to be listed on the Nasdaq and may accept others in the near future, the SEC currently has several crypto ETF applications under review.

Grayscale also added three cryptocurrencies available for trading through its suite of crypto investment trust products. The firm said its Grayscale Zcash Trust, Grayscale Stellar Lumens Trust and Grayscale Horizen Trust were now listed on the OTCQX Best Market under the ticker symbols ZCSH, GXLM, and HZEN.


Grayscale further said that the three trusts are not subject to registration and disclosure requirements from the SEC. The vehicles provide a way for investors to gain exposure to the tokens without directly investing in them.


Thus, the institutional asset manager offers six other crypto investment products with exposure to Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), Ethereum Classic (ETC) and Litecoin (LTC), in addition to a basket of cryptocurrencies through its Digital Large Cap Fund.


Source: Cointelegraph


 

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