Grayscale acknowledges spot Bitcoin ETF approval, says trading begins Thursday News ▸ US ▸ Grayscale ▸ Bitcoin ▸ Regulation
Grayscale acknowledges spot Bitcoin ETF approval, says trading begins Thursday
CEO Michael Sonnenshein called the event a "monumental step forward."
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Updated: Jan. 10, 2024 at 10:30 pm UTC
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Grayscale acknowledged that the U.S. Securities and Exchange Commission (SEC) approved its spot Bitcoin ETF proposal on Jan. 10.
Grayscale CEO Michael Sonnenshein said:
“The approval of spot Bitcoin ETFs in the United States is a monumental step forward for GBTC investors and all those who realize the potential for crypto to transform our future. Today’s historic outcome is a testament to GBTC’s investors for their unwavering patience and support, and to [Grayscale] and our partners for their hard work and dedication.”
Grayscale explained that the U.S. Securities and Exchange Commission (SEC) approved a proposed rule change allowing NYSE Arca to list shares of the Grayscale Bitcoin Trust under the GBTC ticker.
Grayscale stated that this would allow GBTC to operate as a spot Bitcoin exchange-traded fund (ETF) alongside similar funds.
The company said that shares of GBTC are expected to begin trading on NYSE Arca on Thursday, Jan. 11. It additionally said that GBTC shares will stop trading on over-the-counter (OTC) markets and will have been automatically uplisted to NYSE Arca as spot Bitcoin ETF shares at that time. Grayscale noted that current GBTC shareholders do not need to take any action in this regard.
The company said it intends to have the Trust issue additional shares after the initial listing and carry out simultaneous creations and redemptions.
Grayscale was prominent among ETF applicants
Grayscale’s application gained approval alongside ten other spot Bitcoin ETF applications. However, its application is somewhat unique and played a prominent role in the months leading up to the current ETF approvals.
Grayscale’s proposal has been active since mid-2022. In contrast, many other applicants — including those who have previously applied for a spot Bitcoin ETF — instead filed new ETF applications with the SEC starting in the summer of 2023.
Perhaps most notably, Grayscale went to court to compel the SEC to review its proposal. Grayscale obtained a ruling requiring that review in August.
The fact that GBTC existed before its ETF conversion also had implications for its past value. Grayscale halted redemptions of GBTC in 2021, and the fund began to trade at a discount around that time. That disparity decreased before the latest approval: YCharts reports that GBTC’s current discount is -6.53%.
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Mike Dalton
Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada's West Coast.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Grayscale Investments
Established in 2013 by Digital Currency Group, Grayscale Investments is a trusted authority on digital currency investing and cryptocurrency asset management.
Michael Sonnenshein is the CEO at Grayscale Investments, the world’s largest digital currency asset manager.