At the end of August, crypto exchange fund publisher Grayscale won its lawsuit against the US Securities and Exchange Commission (SEC). The SEC will therefore need to provide additional justification if it wants to reject an application for a Bitcoin (BTC) spot ETF from Grayscale. Now it is time; Grayscale has applied again for a spot ETF and is therefore making another attempt.
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Grayscale also wants Bitcoin spot ETF
James Seyffart, ETF analyst at Bloomberg, writes on the social media platform X that Grayscale has filed with the SEC to convert the GBTC mutual fund into a spot ETF. Currently, it is still a trust fund and is more expensive for investors to own due to more complicated management. For this you pay 2% of your investment annually. GBTC also does not currently directly follow the Bitcoin price, but the fund is correlated with it.
Switching to a spot ETF should change this. One of the biggest changes Grayscale wants to make is to remove the “G” from GBTC. After the conversion, the fund only needs to have the ticker symbol “BTC”. As before, the full name of the ETF remains simply “Grayscale Bitcoin Trust”.
Update: New Grayscale S-3/Prospectus #Bitcoin ETF application for conversion $GBTC. Right off the bat, the biggest update is the change plan $GBTC‘s ticker too $BTC (which was expected). I’ll skim through the rest now. pic.twitter.com/W9uNdAHLMv
– James Seyffart (@JSeyff) November 22, 2023
If Grayscale’s transition is successful, it will be successful, according to ETF Store director Nate Geraci a huge advantage compared to other companies that have submitted a similar application. The 12 other funds have no assets, while GBTC is an existing fund. Currently, GBTC has over $5.3 billion in assets under management. For these ETFs, the total market value is very important because this attracts new large investors.
The SEC has not yet approved any spot ETFs
Unfortunately, the other applications for spot ETFs for Bitcoin are not really looking up yet. Approval will apparently have to wait until at least next January, as several deadlines will expire at the same time. With up to 12 competing applications for Bitcoin ETFs, investors certainly have plenty to choose from.
There have also been requests for spot ETFs for Ethereum (ETH), but the market is yet to consider such ETFs for other altcoins.
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