Grayscale said it is prepared to convert its Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund (ETF) after the SEC’s missed deadline.
GBTC discount to net asset value (NAV) has decreased from nearly 48% to 16%, reflecting increased demand.
Arbitrage traders are shorting spot BTC against GBTC longs, as per analysts, after the discount narrowed.
Grayscale has expressed its readiness to convert its Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund (ETF) after the US Securities & Exchange Commission (SEC) missed the deadline to appeal. The discount on GBTC shares against its net asset value (NAV) has significantly reduced from 48% to 16%.
Grayscale moves closer to ETF
Following the court’s deadline for the securities regulator to appeal Grayscale’s conversion request, the latter issued a statement. The company noted its readiness to transform its Grayscale Bitcoin Trust fund (GBTC) into an ETF.
Grayscale’s statement shared with Fox News said: “The Grayscale team remains operationally ready to convert GBTC to an ETF upon the SEC’s approval, and we look forward to sharing more information as soon as practicable.”
This follows the SEC’s decision to not appeal the court’s approval of Grayscale’s fund conversion application. Bloomberg analyst James Seyffart anticipates that dialogue between Grayscale and the SEC will commence this week, offering clarity on ETF approval.
While investors anticipate approval, the GBTC market cap is close to $3.5 billion based on Yahoo Finance data. Meanwhile, the next critical approval deadline for the SEC is upcoming on January 10 which pertains to an application previously submitted by ARK Invest and 21Shares.
Additionally, the SEC is evaluating multiple spot Bitcoin ETF proposals, including those from financial heavyweights like Fidelity and BlackRock.
