The world’s leading crypto asset manager Grayscale is confident that the US SEC to approve a conversion of its GBTC to a spot Bitcoin ETF soon. As regulatory approval of a spot Bitcoin ETF in the U.S. is a matter of “when”, not “if” now, Grayscale executives address some questions about GBTC uplisting as an ETF.
Grayscale Executives On GBTC Unlocking $2 Billion In Value
Grayscale chief legal officer Craig Salm and chief financial officer Edward McGee explain what the U.S. SEC approval of Grayscale Bitcoin Trust (GBTC) to a spot Bitcoin ETF will mean to investors and market participants.
In the ETF format, GBTC shares will track Bitcoin price more closely and any premium or discount on GBTC’s share price will disappear. Currently, GBTC trades at a discount of 8.09% or $1.89 billion. It will unlock approximately $1.89 billion in value for investors through the arbitrage mechanism.
“GBTC has not been able to rely on the arbitrage mechanism inherent to ETFs. GBTC shares can, and have, traded at both premiums and discounts to NAV.”
Grayscale spot Bitcoin ETF will allow investors to use the arbitrage mechanism, which allows shares to be continuously created or redeemed.
Read More: Grayscale Appoints Ex-Invesco Leader for Bitcoin ETF Push
What Happens After SEC Approves GBTC As Spot Bitcoin ETF
GBTC will become registered under the Securities Act of 1933 when the U.S. SEC approves its conversion to a spot Bitcoin ETF. The GBTC shares redemptions are expected to be performed as per the Regulation M relief.
Bloomberg ETF analyst Eric Balchunas said “The reliant on Reg M relief is notable. I had heard something a while ago about Reg M being the poss parking ticket that SEC would use to keep them from the Starting Gate. Not saying this proves it but it is notable that they mentioning, esp right after meeting with SEC.”
GBTC will uplist from OTCQX to NYSE Arca, which will further bring investors into the crypto market. This will boost BTC price massively. Institutional investors looking for safe investment in Bitcoin through an ETF can have the opportunity to trigger mainstream adoption of Bitcoin.
BTC price jumped 3% in the past 24 hours, with the price currently trading at $38,744. The 24-hour low and high are $38,085 and $38,954, respectively. Furthermore, the trading volume has increased slightly in the last 24 hours, indicating interest among traders.
Also Read: Hashdex Submits Amended Bitcoin ETF Filing To US SEC
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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