EddieJayonCrypto

 27 Dec 23

tl;dr

Grayscale has made an amended S-3 filing with the securities regulator to convert the Grayscale Bitcoin Trust (GBTC) fund into a Bitcoin ETF, accepting the SEC’s mandate on cash-only orders. This move comes after Grayscale Investments’ chairman, Barry Silbert, stepped down from his position. The ass...

Grayscale Converts Bitcoin Trust (GBTC) into Bitcoin ETF

Grayscale has made an amended S-3 filing with the securities regulator to convert the Grayscale Bitcoin Trust (GBTC) fund into a Bitcoin ETF, accepting the SEC’s mandate on cash-only orders. This move comes after Grayscale Investments’ chairman, Barry Silbert, stepped down from his position. The asset manager’s strategic updates ahead of the crucial approval deadline in January suggest that they are gearing up for competition with major players like BlackRock in the ETF market. Meanwhile, Bloomberg’s senior analyst Eric Balchunas highlights that ETFs are disruptive as they offer low-cost investment options, potentially challenging the current profitable model of many crypto exchanges.

Grayscale is currently able to accept Cash Orders, according to the amended S-3 filing. Most notably, an S-3 form is a regulatory filing with the Securities and Exchange Commission (SEC) to issue new shares or convert existing securities into a different type. The asset manager has updated its 2018 filing more than once, proposing changes to fee collection and asset combination in an omnibus account to simplify the process of creating and redeeming shares. This demonstrates Grayscale’s commitment to adapt and compete in the ETF market.

Bloomberg’s senior analyst Eric Balchunas highlights that ETFs are disruptive as they offer low-cost investment options. He emphasizes the potential challenges that cost-effective ETFs could bring to the current profitable model of many crypto exchanges, despite significantly lower volume in ETF markets compared to crypto exchanges. This shift represents a pivotal moment in the ETF market and could have significant implications within the cryptocurrency industry.

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