According to CNBC reports, people familiar with the matter revealed that Grayscale Investments plans to submit an application early next week to convert the world’s largest Bitcoin fund into a spot ETF.
The person said that once the US Securities and Exchange Commission (SEC) approves the futures-based Bitcoin ETF, Grayscale intends to immediately submit an application to the SEC.
According to a revised prospectus submitted by asset management company ProShares on Friday, its Bitcoin futures-based exchange-traded fund (ETF) “ProShares Bitcoin Strategy ETF” is scheduled to appear on the New York Stock Exchange Arca on Monday (October 18). Listed, the trading code is BITO.
This will be the first ETF product based on encrypted futures to be listed on a US exchange. Although it does not provide a tool for direct investment in the Bitcoin spot market, it will provide investors with indirect exposure in the form of an ETF.
Analysts pointed out that in the case of such product registration, if the SEC does not raise an objection or intervention within 75 days from the first submission of the application, the product can be clearly listed.
If approved, Grayscale’s ETF will further expand the status of this emerging crypto asset class as a recognized investable asset.
The debut of the Bitcoin futures ETF is about to make its debut. Despite its significance, some crypto investors believe that this step is not sufficient because it will be linked to derivative contracts traded on the Chicago Mercantile Exchange instead of the actual Bitcoin.
However, Grayscale’s spot bitcoin application represents an investment backed by bitcoin, not a derivative related to it.
The Bitcoin held by Grayscale accounts for a large part of the global Bitcoin holdings. As of last Friday, the scale of assets under management of G BTC was US$38.7 billion.
The company is a pioneer in the field of crypto investment, enabling institutional investors such as Ark Invest’s Cathie Wood to bet on Bitcoin. The company initially publicly applied for an ETF in January 2017. After the US Securities and Exchange Commission expressed its dissatisfaction with the Bitcoin market, the company withdrew the application in October of the same year.
Grayscale’s move may be an attempt to force the SEC to take action. The source said that if regulators are satisfied with Bitcoin futures, they should also be satisfied with the underlying market.
Of course, the SEC can still choose to postpone or reject Grayscale’s application.
Last month, Grayscale’s chief executive publicly criticized the SEC’s obvious preference for futures-based ETFs, saying this was a “short-sighted” move that might harm investors’ interests.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/grayscale-is-about-to-submit-a-spot-bitcoin-etf-application/
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