Biggest Bitcoin fund in the world could become ETF by July as GBTC nears $40B AUM

CoinTelegraph

Grayscale could launch its Bitcoin (BTC) exchange-traded fund (ETF) as soon as July 2022, one of its executives has said.

Speaking at a virtual event organized by MarketWatch on Oct. 27, Grayscale global head of ETFs David LaValle gave a nine-month timeline for approval by United States regulators.

How To Get Free Crypto  

Grayscale: Now’s the time to file for an ETF

Grayscale, which runs the largest-volume Bitcoin investment product globally, the Grayscale Bitcoin Trust (GBTC), reiterated this month that it is “committed” to transforming it into an ETF.

According to LaValle, the timing for submitting the application to do so this week was ideal.

“We thought it was the perfect time to submit our filing,” he said.

“Now that the Bitcoin futures products were somewhat off the plate of the SEC, they would be open to look at the filings of spot-based products.”

ETF applications require a lengthy 240-day analysis period with the U.S. Securities and Exchange Commission, opening up the potential for a go-ahead by July.

October saw four ETFs get the green light, these all based on Bitcoin futures rather than spot, something which Grayscale and others are keen to change.

GBTC had $38.8 billion in assets under management (AUM) as of Thursday, with the total across all Grayscale funds now at $53.1 billion.

Coinbase Banner  

GBTC holdings vs. BTC/USD chart. Source: Bybt

Hayes: ETF market needs “fresh capital”

As Cointelegraph reported, hopes are high that spot ETFs will be allowed to operate from November amid fresh criticism of futures-based products.

Related: GBTC delivered better returns than Bitcoin ETFs last week

Arthur Hayes, former head of derivatives trading giant BitMEX, delivered a more scathing take on the entire ecosystem this week.

“There already exists a pseudo-ETF with over $40 billion in AUM, the Grayscale Bitcoin Trust (GBTC). It is not technically an ETF, but it hoovered up assets nonetheless. Therefore, what is required is not a movement of AUM from one tracker product to another, but fresh capital into the system,” he wrote in a dedicated blog post.

“When GBTC is added to the mix of US-listed tracker products, will there actually be net new demand from retail traders and institutions who aren’t already invested in the space? I fear that the narrative on institutional and retail investors plowing AUM into the complex might be misplaced, as those who want to be involved largely already are.”

Markets have had years to price in a potential ETF launch, this having seen multiple rejections by the SEC, each moving the Bitcoin price less and less with time.

FreeBitcoin Banner  

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Go to Source
Author: William Suberg


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.