Bitcoin ETF: Grayscale’s CEO Reiterates Commitment
Leading investment and asset management firm, Grayscale has restated its commitment towards converting its Bitcoin Trust to a Bitcoin Exchange-traded fund (ETF). The firm’s CEO, Michael Sonnenshein declared that Grayscale’s Bitcoin ETF is ‘a couple of maturation points’ away. However, the US SEC position on cryptocurrency ETFs still remains the same- a blatant NO!
Earlier today, while speaking to Business news, CBNC, Michael Sonnenshein said a US Bitcoin ETF is not an issue of ‘if’ but ‘when.’ Cryptocurrency ETFs have been on the sidelines in the US for a long time, due to volatility and other risks they pose, according to the US Securities and Exchange Commission. Canada, on the other hand, already has three Bitcoin ETFs and South America recently got its first Bitcoin ETF listed on the Brazilian Stock Exchange.
US SEC Rejects Numerous Crypto ETFs Applications
After the rejection of numerous Crypto ETFs applications by various organizations, the US SEC currently has 13 Bitcoin ETF applications submitted for consideration to the Commission
by different firms including Grayscale. The belief in some quarters is that a Bitcoin ETF would create a bearish atmosphere for the crypto asset in the long run.
Notwithstanding the US SEC reluctance to approve an ETF for Bitcoin, Grayscale is insistent on converting its Grayscale Bitcoin Trust to an ETF. Although the firm’s Bitcoin Trust has witnessed massive investment from its clients around the globe, the reason it is insisting on an exchange-traded fund is not known. ETFs allow investors to indirectly own crypto assets, thereby hedging against the inherent volatility they are known to have. They provide investors with a range of investment options such that they manage their risks properly.
In light of Grayscale’s renewed interest on a Bitcoin ETF, it inked a partnership deal with American asset management firm, BNY Mellon. The partnership also entails BNY Mellon providing asset servicing for the former’s investment products.
Canada’s first Bitcoin ETF, Purpose BTC ETF- which is also the world’s first crypto (BTC) ETF- added $3 million daily during the dip in mid-May. Tokenhell had reported in June that the Purpose Bitcoin ETF was holding over 20,000 BTC in its custody. At the time, the total value of Bitcoin held was about $720 million.
GBTC Unlocks 16k BTC This Week
The anticipated GBTC unlocking has occurred. Surprisingly, its effects on the entire crypto market have not been felt, contrary to speculations that the unlocking will trigger selling pressure from investors of the Trust. Before the unlocking, experts at investment bank, JP Morgan Chase had predicted that Bitcoin would break its $28k support and move down to a $25k bottom. Despite the predictions and analysis, none of this is yet to happen. Instead, Bitcoin is trading at the $31k region as of now. Since there are other unlocking events to take place in the coming months, it would be too early to rubbish the claims of JPMorgan’s experts.
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