The management of Grayscale has recently told the media that they have plans to convert their Bitcoin Trust into a formal Bitcoin ETF. It is worth noting that Grayscale Investments is a daughter company of Digital Current Group, and it has been operational to deal with the cryptocurrency investment since 2013. Grayscale has gone on to create different cryptocurrency trusts.
The biggest trust that Grayscale investment holds right now is GBTC. According to careful estimates, this crypto enterprise is among the largest holders of Bitcoin in the world.
Recently, the executive brass of the investment giant has confirmed via Twitter that the GBTC trust is set out to become a formal Bitcoin Related ETF in the near term.
Jennifer Rosenthal is the communications director at Grayscale Investments. She is the first one to make the news public via her Twitter account. The tweet declared that for making the conversion possible, the investment vehicle needs to draft and submit a legal document called the 19b-4 form. This legal application is going to be submitted to the NYSE Arca.
NYSE Arca or ArcaEx is an exchange market where both stocks and their derivatives (options) are listed for trading. Rosenthal made it clear in her tweet that the decision has been highly anticipated and has the potential to generate many new trade opportunities for the enterprise. As of last month, the total Asset under management at Grayscale was valued at $53.5 billion, whereas, GBTC holds a share of $39.77 billion.
Crypto Enterprises are Seeking Favorable Legal Environment for Crypto Derivatives
Michael Sonnenshein recently told reporters at CNBC that the news of SEC granting a green light to the Bitcoin ETF applicants has sparked a new light of encouragement and hope among the digital investors. He further explained that as soon as the SEC formally approves the ProShares Bitcoin ETF application, Grayscale is going to file the 19b-4 form.
It is worth noting that the first-ever Bitcoin ETF in the USA is set to go live next Tuesday under the ticker BITO. Sonnenshein also claimed that watching Bitcoin derivatives getting a spot on the spot exchanges of the USA has a profound impact on the financial ecosystem. He added that such a big change is going to create a lot of noise among investors in the upcoming months as well.