Grayscale Investments, close to applying for a Spot Bitcoin ETF, according to sources

Michael Sonnenshein, CEO of Grayscale Investments LLC, will effectively speak at the Cryptographic Summit on February 25, 2021.

Daniel Acker | Bloomberg | Getty Images

Grayscale investment Plan to submit an application to transform the world’s largest Bitcoin fund According to someone with knowledge of the problem, it will be a spot ETF early next week.

The authorities of the investment company Competitors As for futures-based Bitcoin ETFs, he said. It happened at the end of friday..

The grayscale application began a 75-day review period, sources said, refusing to be identified because the Newyork-based company did not disclose its plans.

If approved, grayscale ETFs are another step in justifying early crypto asset classes.Bitcoin has proven to be resilient and approaching record highs $ 60,000 On Friday, even after a setback including: Banned by China last month..

Bitcoin-The debut of futures ETFs is imminent, but important, but some consider it an inadequate step Cryptographic investor This is because it is linked to derivative contracts traded on the Chicago Mercantile Exchange, not the actual Bitcoin.

However, Grayscale’s Spot Bitcoin application represents a Bitcoin-backed investment, not a derivative associated with Bitcoin.

Grayscale has a significant portion of the world’s Bitcoin holdings in storage due to the trust known by the GBTC ticker. GBTC had $ 38.7 billion in assets under management as of Friday.

The company is a pioneer in crypto investment that has enabled institutional investors like ArkInvest. Cathie wood Originally bet on Bitcoin, which publicly submitted an ETF in January 2017. The application was withdrawn in October of the same year after the SEC showed that it was not yet satisfied with the Bitcoin market.

The grayscale movement could be an attempt to force the SEC’s hand. If you are happy with Bitcoin futures, regulators should be happy with the underlying market, according to sources.

Of course, the SEC can choose to delay or reject grayscale applications.

Grayscale CEO last month Publicly criticized The SEC’s apparent preference for futures-based ETFs is called a “short-sighted” move that can harm investors.

Become a smarter investor CNBC Pro..
Get stock selection, analyst phone calls, exclusive interviews, and access to CNBCTV.
Sign up and get started Free trial today..

Grayscale Investments, close to applying for a Spot Bitcoin ETF, according to sources

Source link Grayscale Investments, close to applying for a Spot Bitcoin ETF, according to sources

Back to top button