Grayscale announced that it wants to transform the Grayscale Bitcoin Trust, which it founded in 2013, into an exchange-traded fund (ETF). If GBTC is converted to ETF, existing GBTC investors will not be required to “take any action”.
Grayscale Bitcoin Trust, which has $ 34 billion in assets under its management, is the largest investment product opened for Bitcoin in the world. Grayscale announced today that it is “100% determined” to convert GBTC into an exchange traded fund.
There will be a decrease in the operating cost cut
Grayscale, affiliated with Digital Currency Group, applied to the SEC in 2016 to establish an ETF. The company withdrew its application because the regulations at that time were “not developed enough”.
Grayscale announced today its intention to turn the SEC-controlled GBTC into an exchange-traded fund. “Although many companies have applied to SEC with S-1 or 19b-4 forms, we are confident in our position.” Grayscale announced that if GBTC is converted to ETF, existing investors will “not need to take any action and the fund management cost will be reduced”.
Competition heats up for ETF
The premium rate of GBTC, which has been traded above the market price for months, spent March in a completely negative zone.
Glassnode’s co-founder Rafael Schultze-Kraft says the drop in GBTC coincided with the opening of Purpose Bitcoin ETF in Canada. Purpose ETF, which is thought to keep the investor away from GBTC, has 16,462 BTC as of April 1.
Grayscale began to play an active role in the exchange traded fund race in the USA. According to Messari founder Ryan Selkis, the conversion of GBTC to an ETF could lead Grayscale to miss more than $ 250 million a year in revenue opportunities. However, a reduction in cost cuts is thought to make Grayscale more competitive.