Grayscale plans to convert Bitcoin trust into ETF

Grayscale plans to convert Bitcoin trust into ETF

Grayscale is preparing a bid to convert the world's largest Bitcoin fund into an ETF, according to CNBC.

The world's largest digital asset manager has made no secret of its intention to seek approval for a Bitcoin spot ETF once the futures ETF is approved by the commission.

The Grayscale ETF will be backed by actual units of the cryptocurrency, and not derivative contracts. However, the SEC prefers futures ETFs because it can fit them under the Investment Company Act of 1940. The SEC previously stated that it does not plan to approve a pure spot Bitcoin ETF.

Grayscale CEO Mike Sonnenstein believes that spot funds have an advantage and should be launched before futures ones. 

Some analysts predict that the $38.7 billion Grayscale Bitcoin Trust (GBTC), which is already traded on public stock markets, has no chance of getting approval anytime soon for its current plan to become an ETF.

Once the application is filed, the SEC will have 75 days to review it.

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