Sunday, October 2, 2022
HomeBTCGrayscale BTC Trust ETF conversion plan receives overwhelming support

Grayscale BTC Trust ETF conversion plan receives overwhelming support

The Securities and Exchange Commission in the United States has invited public comment on a proposed rule change that would transform Grayscale’s Bitcoin Trust into a spot-based exchange-traded fund (ETF).

A notice of filing for a proposed rule change to list and trade shares of Grayscale Bitcoin Trust as a spot-based ETF drew a considerable number of comments, with a substantial majority of them in favour. On Feb. 15, Bloomberg’s senior ETF analyst Eric Balchunas examined some of the more recent comments and found that 95 percent of those who responded were in support of the proposed change.

In recent months, Grayscale’s Bitcoin Trust has been trading at a significant discount as investors speculate and hedge on the ETF’s approval by the SEC. According to Ycharts, the fund was trading at a discount of 24.75 percent at the time of writing. This means that, with BTC currently trading at roughly $43,600, the reduced fund would cost around $32,500.

In October, Grayscale hinted at transforming the world’s largest Bitcoin fund into a spot ETF. The SEC postponed its judgement on the conversion of the $37 billion GBTC fund on February 4th, citing the same old worries about manipulation, liquidity, and transparency.

It’s a wrap for this story.

Kunal Krishan
Kunal is an investment space writer who firmly believes investment is something which should not be a choice but a part of everyone's life.
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