Bitcoin Marketcap
$1.14T
Gold Marketcap
$15.96T
BTC Settlement Volume (24hr)
$12.90B
BTC Inflation Rate (next 1yr)
1.17%
CASEBITCOIN making the case for bitcoin every day
Bitcoin Marketcap
$1.14T
Gold Marketcap
$15.96T
BTC Settlement Volume (24hr)
$12.90B
BTC Inflation Rate (next 1yr)
1.17%
CASEBITCOIN making the case for bitcoin every day
Grayscale Investments - the manager of the Bitcoin Investment Trust, which trades as GBTC on US markets - today announced their intention to ultimately turn GBTC into a proper Bitcoin ETF.
They said:
Today, we remain committed to converting GBTC into an ETF although the timing will be driven by the regulatory environment. When GBTC converts to an ETF, shareholders of publicly-traded GBTC shares will not need to take action and the management fee will be reduced accordingly.
The GBTC product in its current form is not a traditional ETF. It is a closed-end fund with no redemption mechanism for the underlying BTC; thus fluid two-sided arbitrage cannot be done. This has caused GBTC to trade at a significant premium (at times in excess of 100%) to spot BTC throughout most of its life. In recent weeks, though, the premium has gone negative as GBTC both faces more competition as a publicly-listed instrument for BTC exposure (see $MSTR, $BTCC), and big-pocket firms participating in a carry-trade of sorts to bring the premium down.
Grayscale's statement of intent to covert to an ETF when the "regulatory environment" is right is not surprising; given that the underlying Trust and GBTC product, as currently formed, may lose competitive advantage if and when the SEC (finally) approves proper Bitcoin ETF products.
tldr