Grayscale to Launch ETF With Exposure to Three Other Tokens
The number of crypto ETFs on the New York Exchange (NYSE) is set to increase, barely 24 hours two weeks after the first ETF got the Securities and Exchange Commission’s nod to launch. This was made known through an announcement on Twitter by Grayscale earlier on Monday, 18th October 2021.
In the tweet, Grayscale confirmed that it was going to launch an ETF once it got permission from the SEC to do so. Grayscale also announced that it has added three cryptocurrencies to its trusts before the launch.
Grayscale, a US-based cryptocurrency institutional investor and asset manager, said that it would only proceed with the launch once the SEC gives its “verbal and verifiable” evidence of its approval and comfort with the Bitcoin-based ETF.
Grayscale has a Grayscale Bitcoin (GBTC) Trust that has been on the NYSE since 2013. It is the GBTC trust that it said would be converted into a Bitcoin-ETF for public trade. The institutional investor firm will then add Stellar Lumens, Zcash, and Horizon to its list of trusts, officially named Grayscale Stellar Lumens Trust (GXLM), Grayscale Zcash Trust (GZCSH), and Grayscale Horizen (GHZEN) respectively. They would be listed under their respective tickers.
According to Jennifer Rosenthal, Grayscale’s communication director, the biggest condition for the launch would be that the SEC expresses its comfort with approving BItcoin-based ETF. Under the Securities Act, the NYSE can convert a Trust into an ETF provided a document known as 19b-4 is filed.
Grayscale’s announcement brings an increase in the number of crypto ETFs that are set to be launched. In the previous weeks, ProShares and Valkyrie had announced that their respective ETFs would go live this week after gaining approval from the SEC. The regulatory body also has several bitcoin-based ETFs applications pending approval. The SEC has not commented on the increase in the number of applications.
Although Grayscale has said it is waiting for the SEC’s approval, its ETFs are not impacted by the SEC’s requirements on registration and exposure. Grayscale’s ETFs are public offerings through which investors can gain market exposure to cryptocurrencies, but they are in no way going to own any of the coins through Grayscale’s trusts.
Cryptocurrencies Adoption in The US
The US currently leads in the global ranking of countries with exposure to crypto education and has some of the biggest whales in the industry. US-based institutional investors account for a large number of whales that can move the market without effort. Both the Northern and Southern American continents are seen as ready to adopt cryptocurrencies in the coming months.
Recently, El Salvador’s president said that he believes that more countries will adopt bitcoin soon; a sentiment that several investors share.
Bitcoin is on a bullish trend, having formed the ‘three-white-soldiers’ pattern earlier on the weekly chart. The coin currently trades above $61k and is believed to be heading to an all-time high price. Earlier, 254 new whales were noticed to have entered the industry, signalling a change in stance from bearish to bullish sentiments.
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