Institutional asset manager Grayscale has announced it will be converting its GBTC Trust into an exchange-traded fund once the U.S. Securities and Exchange Commission has “comfort” with recently approved Bitcoin futures ETFs.
In an Oct. 18 Twitter thread, Grayscale communications director Jennifer Rosenthal said the asset manager would proceed with offering an exchange-traded fund, or ETF, when “the SEC has formally expressed their requisite comfort with the underlying Bitcoin market.” The offering would convert the asset manager’s Grayscale Bitcoin Trust (GBTC), first listed in 2013, into an ETF.
“Once there’s official and verifiable evidence of the SEC’s comfort with the underlying Bitcoin market — likely in the form of a Bitcoin Futures ETF being deemed effective — the NYSE Arca will file a document called the 19b-4 to convert $GBTC into an ETF,” said Rosenthal.
The announcement follows ProShares saying its Bitcoin (BTC) futures-linked ETF will begin trading on the New York Stock Exchange under the ticker BITO starting tomorrow. Filings with the SEC show the regulator has also accepted the registration request for shares of Valkyrie’s Bitcoin Strategy ETF to be listed on the Nasdaq, with more potentially following — the SEC currently has several crypto ETF applications under review.
Grayscale also added three cryptocurrencies available for trading through its suite of crypto investment trust products. The firm said its Grayscale Zcash Trust, Grayscale Stellar Lumens Trust, and Grayscale Horizen Trust were now listed on the listed on the OTCQX Best Market under the ticker symbols ZCSH, GXLM, and HZEN, respectively.
According to Grayscale, the three trusts are not subject to registration and disclosure requirements from the SEC. The vehicles provide a way for investors to gain exposure to the tokens without directly investing in them. Grayscale offers six other crypto investment products with exposure to BTC, Ether (ETH), Bitcoin Cash (BCH), Ethereum Classic (ETC), and Litecoin (LTC), in addition to a basket of cryptocurrencies through its Digital Large Cap Fund.