Grayscale Bitcoin Trust Aims for ETF Shift to a Narrower Tap

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Grayscale, a major player in digital asset management, has expressed excitement over the potential transformation of its Grayscale Bitcoin Trust (GBTC) into a Bitcoin ETF. The move could eliminate the current 8.09% discount of approximately $1.89 billion, bringing the price of GBTC more closely in line with the real value of Bitcoin, providing significant benefits to investors.

The company’s general counsel, Craig Salm, and chief financial officer, Edward McGee, revealed the details. Pending approval from the United States Securities Exchange Commission, GBTC is set to move from its current platform, OTCQX, to the prestigious NYSE Arca exchange. The move aims to better synchronize GBTC shares with the real price of Bitcoin and introduce a simplified mechanism for investors to create or redeem shares effortlessly.

Eric Balchunas, Bloomberg ETF analyst observed notable reliance on Regulation M relief (Reg M). He references past conversations suggesting that the SEC could use Reg M to potentially obstruct or postpone specific proceedings, although he stops short of asserting this. Balchunas notes the intriguing timing of the mention of Regulation M immediately after Grayscale’s meeting with the SEC, hinting at its importance or potential impact in their deliberations.

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With Bitcoin (BTC) currently priced at $39,481 and an increase in trading volume indicating increased trader interest, the prospect of a spot Bitcoin ETF ensures investors have a more accurate representation of the value of Bitcoin through GBTC and establishes a safer path for institutional investors to interact with Bitcoin. . This development has already led to a 3% increase in the value of Bitcoin over the past 24 hours, accompanied by a remarkable increase in trading volume, signaling widespread interest.

In a November 28 article on his colleague Eric Balchunas had placed a 90% chance on spot approvals of Bitcoin ETFs before January 10, 2024, and the two delays “all but confirm to me that this was likely a move to line up every applicant for approval potential by January.” Deadline January 10, 2024,” Seyffart said.

Review: Gracy Chen, Bitcoin ETF optimist and Worldcoin skeptic: Hall of Flame