The sponsor behind Grayscale Bitcoin Trust, one of the world’s largest digital asset managers, stated that it is “100% committed” to turning its flagship fund into an exchange-traded fund. Grayscale Investments said via a blog post on Monday that it is “100% committed to converting the bitcoin trust into an ETF,” noting that “timing will be driven by the regulatory environment.”
GBTC, referring to the ticker symbol for Grayscale Bitcoin Trust GBTC, + 3.80%, would rank second with around $ 36 billion in assets among commodity-linked ETFs, behind only SPDR Gold Shares GLD, -0.05%, which has about $ 60 billion in assets. Take a look: A bitcoin revolution is happening and MarketWatch is gathering a cast of crypto experts to explain what it all means. Sign up! Grayscale applied for a bitcoin ETF in 2016, becoming one of several entities attempting to launch the first crypto-backed ETF, which is seen as paving the way for increased retail adoption of bitcoin and the broader virtual asset complex. . An ETF could also be more easily stored in a retirement account and other types of standard investment portfolios. Grayscale subsequently withdrew its application. Recent efforts to make another run in a bitcoin-backed ETF come amid a new fervor among institutions to be the first in the US to implement a crypto fund with an ETF wrapper. Fidelity applied last month to launch a new bitcoin ETF and several other companies, including VanEck, SkyBridge Capital and WisdomTree Investments, are seeking approval from the Securities and Exchange Commission for a crypto fund. The Grayscale trust is only accessible to qualified investors. Rising bitcoin prices BTCUSD, + 1.82% and other altcoins are behind the renewed enthusiasm. A single bitcoin was trading at around 58,000 Monday on CoinDesk, and crypto No. The world’s # 1 gained more than 100% so far in 2021. Meanwhile, crypto No. 2nd largest and second largest by market value, ether on the Ethereum blockchain hit an all-time high of $ 2,144.93 over the weekend. Ether ETHUSD, + 2.18% was changing hands at $ 2,104, on the last check. Cryptocurrency watchers say that Grayscale may also be eager to convert its GBTC into an ETF due to concerns that potential new entrants to the fund offering greater accessibility to investors could erode its current dominance. Investors note that GBTC’s net asset value is trading at a discount to bitcoin when it used to trade at a premium as evidence of some loss of market share to competitors. Grayscale is currently trading roughly 4% off bitcoin, according to MarketWatch calculations, compared to an average premium of 37% over the past five years, according to Ycharts.com. Grayscale Bitcoin Trust has gained 65% so far this year, compared to an annual gain of more than 100% for the underlying bitcoin. Those earnings far exceed those of stocks and gold. The Dow Jones Industrial Average DJIA, + 1.13% has risen almost 10% so far in 2021, the S&P 500 SPX Index, + 1.44% has gained more than 8.5% so far this year , while GC00 gold futures, + 0.02% are down almost 9% this year.