World’s largest Bitcoin fund could become an ETF by July as GBTC approaches AUM’s $ 40 billion

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Grayscale could launch its Bitcoin (BTC) exchange-traded fund (ETF) as early as July 2022, one of its executives has said.

Speaking at a virtual event hosted by MarketWatch on October 27, Global ETF Head Grayscale David LaValle gave nine months for approval by US regulators.

Grayscale: Now is the time to deposit an ETF

Grayscale, which manages the world’s largest Bitcoin investment product, the Grayscale Bitcoin Trust (GBTC), this month reiterated that it was “committed” to turning it into an ETF.

According to LaValle, the timing to submit the request this week was ideal.

“We thought it was the perfect time to submit our case,” he said.

“Now that Bitcoin futures were somewhat off the SEC’s base, they would be open to looking at cash product deposits.”

ETF applications require a long 240-day analysis period with the United States Securities and Exchange Commission, opening the possibility of a green light by July.

In October, four ETFs were given the go-ahead, all based on Bitcoin futures rather than the spot, something Grayscale and others are keen to change.

GBTC had $ 38.8 billion in assets under management (AUM) on Thursday, with the total of all grayscale funds now standing at $ 53.1 billion.

GBTC holdings against BTC / USD chart. Source: BybtHayes: ETF market needs “new capital”

As Cointelegraph reported, hopes are high that spot ETFs will be allowed to operate from November amid new reviews of futures products.

Related: GBTC Generated Better Returns Than Bitcoin ETFs Last Week

JUST SAW ANALYSIS by a fund manager trader from the first date of launch of futures contracts for #bitcoin ETFs (they move to the new contract of the first month). As many predicted, it’s not pretty: ETF investors are facing a big tracking error. Add to that two #BTC price flash crashes since the inception of the ETF. Ugh

– Caitlin Long (@CaitlinLong_) October 29, 2021

Arthur Hayes, former head of derivatives trading giant BitMEX, presented a more scathing take on the entire ecosystem this week.

“There is already a pseudo-ETF with over $ 40 billion in assets under management, the Grayscale Bitcoin Trust (GBTC). It’s not technically an ETF, but it has recovered some assets nonetheless. Therefore, what is required is not a movement of AUM from one tracking product to another, but new capital in the system, ”he wrote in a dedicated blog post.

“When GBTC is added to the mix of listed tracking products in the US, will there really be net new demand from retail traders and institutions that haven’t already invested in the space?” I’m concerned that the narrative of institutional and retail investors investing AUMs in the complex is misplaced, as already are those who wish to be broadly involved. “

Markets have had years to evaluate a possible ETF launch, which has seen several SEC rejections, each causing the price of Bitcoin to move less and less over time.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move comes with risk, you should do your own research before making a decision.

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