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The largest global crypto asset manager has made it easy to convert ETC, BCH and LTC Trust into ETFs in the future
Contents
- The way is paved for ETC, BTC and LTC ETFs
- Grayscale wants to convert GBTC into a Bitcoin ETF
According to Forbes, Grayscale’s Bitcoin Cash, Litecoin and Ethereum Classic Trusts are now reporting to the SEC, making it easier for them to gain approval in the future to become ETFs.
Grayscale Investments is the world’s largest crypto asset manager with nearly $50 million in crypto assets under management and is affiliated with the founder and CEO of the cryptocurrency group, Barry Silbert.
Exclusive: Grayscale Paves the Way for Ethereum Classic, Bitcoin Cash and Litecoin ETFs While Bitcoin’s First Fate Lies in Balance: Via Tweet embedhttps://t.co/BBxCtL6KBH
– Forbes Crypto (@Forbes Crypto) September 10, 2021
The way is paved for ETC, BTC and LTC ETFs
Until now, Grayscale had only the Bitcoin and Ethereum Trusts (GBTC and ETHE), as well as its large digital fund, which were sending their financial reports to the US Securities and Exchange Commission in order to meet the requirements mentioned in the Securities Act of 1934.
This fact makes them regulated just like the publicly traded companies on NASDAQ and the New York Stock Exchange.
According to the company’s CEO, Michael Sonnenchin, Grayscale investors would have liked that to happen. He also stated that turning these crypto trust funds into SEC reporting firms opens them up to a broader potential influx of investors who would expect to see this type of reporting to the regulator.
Among other advantages of these Grayscale trusts, the closing period for their shares will now be reduced from just one year to six months, and it will be easier to convert them into exchange-traded funds with SEC credibility.
Grayscale wants to convert GBTC into a Bitcoin ETF
Earlier this year, Grayscale announced its plan to convert Bitcoin Trust into a Bitcoin ETF. Also, more than 20 other entities have applied for a Bitcoin ETF, but SEC President Gary Gensler has given preference to a futures ETF over Bitcoin over BTC Spot. Sonnenshein believes the former provides more protection for investors, and Sonnenshein recently disputed this view when appearing on CNBC’s Squawk Box.
He believes that investors should be given a choice between a Bitcoin ETF and a futures ETF.
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