The BTC Trust from Grayscale, which was a vehicle for institutional investments of large American banks and other institutional operators, wants to become a ETF.
A situation that we had already announced a few weeks ago, and which now takes concrete form with the filing of the necessary documents to SEC – the authority responsible for supervising financial markets – and also al NYSE, the New York Stock Exchange that will host this passage.
Grayscale wants to become an ETF: what it means for BTC
Grayscale BTC Trust today it is a private fund that buys directly BTC and operating in mode OTC, that is to say over the counter, with informal and non-formal trading on regulated markets. A modality that has allowed him to operate with physical replica without SEC could put his mouth on it, thus decreeing the success of the trust same.
Now though, after that the first BTC ETFs have been approved, the fund would have decided it wanted to move to regulated markets – and therefore to NYSE from New York, to become accessible also to the world of small and medium investors. A request that was formalized yesterday and that sees how first day for approval from SEC, although some clarifications will have to be made in this regard.
The pressure on SEC from physically replicating ETFs
SEC – this too was a topic that we discussed extensively on the pages of Cryptocurrency – is actually not very inclined to accept ETF which are based on physical replica, as it would consider them more risky than those that replicate the trend of BTC futures. For example, recent ones belong to this category ETF approved of ProShares and of Valkyrie, which are already traded on regulated markets.
The aversion to SEC towards this type of product was confirmed by the postponement of another ETF of Valkyrie, which is however based on physical replication, or on the direct purchase of BTC. The Grayscale Trust it would belong to the latter category and therefore, under current market conditions, it would seem difficult to see it approved as early as 24 December, at least if the same conditions exist today.
The arrival of Grayscale in the field of BTC ETF it would be a very important boost also in price terms and it would definitely help BTC to reach the price levels that we have fixed in ours BTC forecasts. In fact, it would be a physically replicated fund, which already includes very important operators – such as various investment banks and also the fund ARK.
Such a fund would also have the merit of bringing many small investors, albeit always with an intermediary contract, to the world of Physical BTC. All that would be missing, essentially, from the products they have recently been approved by SEC.