Grayscale, the world’s largest crypto fund manager, filed with the United States Securities and Exchange Commission (SEC) the necessary documentation to convert its Bitcoin (BTC) trust into a BTC exchange-traded fund (ETF). . An approval by the body, according to experts, could revolutionize the market.
A new publicly traded mutual fund would lead to a new rally, amid new institutional investments and right after BTC surpasses a trillion dollar market capitalization. The leading crypto currency has failed to stabilize above $ 60,000 in recent weeks, and a gesture from the SEC could provide that much-needed boost. While immediate approval is not expected, it will be interesting to see what position the agency takes in the short term.
So far, the only two countries that have approved ETFs of the leading crypto currency have been Canada and Brazil. As has happened in both cases, the creation of these financial instruments requires a considerable initial investment, which in principle serves to support the fund.
That initial investment – from Grayscale or any firm that claims to have your ETF – will impact the market significantly, as have those made by Micro Strategy, Tesla, Square, or other companies in the past.
“First of all, we want to be clear: we are 100% committed to turning GBTC into an ETF”.
Likewise, the approval of an ETF would represent a new rapprochement between the crypto market and traditional financial channels, and would open another door to the massive adoption of digital assets.
This is not the first time that Grayscale has made such a filing with the SEC. In the past, as has happened with the attempt of other firms, the regulator rejected the request. However, the growing interest of large companies in the crypto market alters the picture.
In any case, an eventual approval will require the formulation of new regulatory guidelines for the market. The fund managers acknowledge that question: “The timing of converting GBTC into an ETF will depend on the regulatory environment.”