Grayscale Confirms Plan to Convert Flagship Product (GBTC) Into Bitcoin ETF.
Grayscale’s communications director, Jennifer Rosenthal who made a tweet before the Bitcoin ETF approval by the U.S. Securities and Exchange Commission (SEC)
, says that once the bitcoin exchange-traded fund (ETF) is approved, Grayscale will convert it flagship product Grayscale Bitcoin Trust (GBTC) to Bitcoin ETF.
Here's her tweet:
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. -- Rosenthal said.
She also said : "@Grayscale’s position has always been clear: we are 100% committed to converting $GBTC -- and our product family -- into ETFs, when the SEC has formally expressed their requisite comfort with the underlying Bitcoin market."
And after SEC approved Bitcoin ETF, she made another tweet to confirm that Grayscale will be filling to convert GBTC into ETF.
Today, I’m happy to confirm that @Grayscale WILL file for $GBTC to be converted into an #ETF as soon as there’s a clear, formal indication from the SEC.
Some people think Grayscale convertion of $GBTC to ETF is a huge news, while some clients feel Grayscale is stalling for time at their expense. With competitor products in the market and GBTC trading at a substantial discount, many feel the 2% fee is exorbitant and deterring new investors from investing in the fund, that the management team is horrible and It’s time for them to lower the 2% management fee. Despite some people's opinions on the convertion it still a bullish news for Bitcoin.
According to CNBC News on Monday, Michael Sonnenshein Grayscale CEO :
There is a lot of excitement for regulators finally allowing a bitcoin anything onto a national securities exchange … When you look at the structure of a bitcoin futures product, there is going to be an impact to investors.
The company’s total assets under management (AUM) is $53.5 billion as of Oct. 18, with GBTC holding about $39.77 billion.
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