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Grayscale Says It Is 100 Percent Committed To Converting Its Bitcoin (BTC) Trust Into ETF

Grayscale, a renowned crypto asset management company, has confirmed the buzz in the market that they are converting their BTC trust into an ETF (Exchange-Traded Fund). This news was confirmed when the company filed its reports with the Securities and Exchange Commission (SEC) of the United States on 5th April 2021.

Grayscale Confirms That It Plans To Convert GBTC Into ETF

The company officials stated that there has been a lot of talk in the financial markets and a lot of questions about the possibility of a BTC ETF in the United States, and the company would like to clear its position on this matter and use this opportunity to provide a better context on what would such a development mean for the company and the Grayscale BTC Trust. They said that the first thing they would like to point out is that all the rumors are true, and Grayscale is fully committed to converting its Grayscale BTC Trust (GBTC) into an Exchange Traded Fund (ETF).

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The company officials said that they would be eager to perform this function as soon as possible. Though, the timing and the execution of this conversion from the GBTC into an ETF will highly depend on the regulations set by the Securities and Exchange Commission (SEC) of the United States.

The company is adamant on approval from the Securities and Exchange Commission (SEC) of the United States and the formal regulations because Grayscale had initially applied for an Exchange Traded Fund (ETF) in 2016, but the company withdrew their application because there were a lot of hurdles posed by the SEC regulations.

The Grayscale BTC Trust (GBTC) and ETF

Grayscale BTC Trust (GBTC) is currently being traded at a discount price for more than a month after benefiting from a massive premium for many years. This negative development has been happening despite the price of Bitcoin floating around the mark of $60k.

Reportedly, Grayscale’s parent company, the Digital Currency Group, has posted an announcement that they would be purchasing GBTC shares worth $250 million to try and cope with this problem. Brazil and Canada are ahead of the US in the ETF race as the concerned authorities in those countries have already approved similar ETFs.

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MubaShar Nawaz (United Arab Emirates)

MubaShar Nawaz is an experienced crypto writer working for Tokenhell. Having passion for writing, he covers news articles from blockchain to cryptocurrency.

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