The world’s largest bitcoin fund could become an ETF by July, when GBTC approaches $ 40 billion AUM


Grayscale could launch its Bitcoin (BTC) Exchange Traded Fund (ETF) as early as July 2022, said one of its executives.

At a virtual event hosted by MarketWatch on October 27th, David LaValle, Grayscale’s global director of ETFs, announced a nine-month deadline for regulatory approval.

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Grayscale: Now is the time to apply for an ETF

Grayscale, which operates the world’s largest Bitcoin investment product, the Grayscale Bitcoin Trust (GBTC), reiterated this month that it has “committed” to converting it into an ETF.

According to LaValle, the time to submit the application was ideal this week.

“We thought it would be the perfect time to submit our application,” he said.

“Now that the Bitcoin futures products were off the SEC’s plate, they would be open to filing spot-based products.”

ETF applications require a long analysis period of 240 days with the U.S. Securities and Exchange Commission, which opens the potential for clearance by July.

In October, four ETFs received the green light, all of which were based on Bitcoin futures rather than spots, which Grayscale and others would like to change.

GBTC had $ 38.8 billion in assets under management (AUM) as of Thursday, with the total of all Grayscale funds now standing at $ 53.1 billion.

GBTC stocks vs. BTC / USD chart. Source: Bybt

Hayes: ETF market needs “fresh capital”

As Cointelegraph reported, hopes are high that spot ETFs will be allowed to operate from November in the face of new criticism of futures-based products.

Related: GBTC delivered better returns than Bitcoin ETFs last week

Arthur Hayes, former head of derivatives trading giant BitMEX, delivered a devastating view of the entire ecosystem this week.

“There is already a pseudo ETF with assets under management of over 40 billion US dollars, the Grayscale Bitcoin Trust (GBTC). It’s not technically an ETF, but it has soaked up assets nonetheless. Therefore, there is no need to move AUM from one tracker product to another, but rather fresh capital into the system, ”he wrote in a special blog post.

“If GBTC is added to the mix of tracker products listed in the US, will there really be net new demand from retailers and institutions that are not yet invested in this area? I fear the narrative about institutional and private investors bringing AUM to the complex may be out of place, as those who want to get involved are largely doing already. “

Markets have had years to price in a potential ETF launch after the SEC rejected it on multiple occasions, with Bitcoin price moving less and less over time.

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