With the approval of a Bitcoin futures ETF; which will debut in the next few days; It is not surprising that competition is beginning to emerge in the marketplace. One of the main competitors will be Grayscale Investments, who announced that they plan to submit a request to the SEC to convert their Grayscale Bitcoin Trusten fund, into a spot Bitcoin ETF.
According to anonymous Grayscale representatives, the firm was waiting for competitors to scramble to get approval for a Bitcoin futures ETF from the SEC; for later they make a request.
Grayscale Plans to Convert GBTC to a Spot Bitcoin ETF
Grayscale’s announcement was released on October 15 through Bloomberg. However, it was only yesterday that it was fully confirmed that the investor fund management company would submit the request to convert GBTC into one of the first Bitcoin ETFs.
It is not surprising what happened, as with the approval of the BTC futures ETF there will be many competitors looking to gain exposure to the market. This strongly benefits the market, as it further solidifies cryptocurrencies in the real world; to put it that way.
Grayscale’s request to convert GBTC to a Bitcoin spot ETF will be under review for a period of 75 days.
If the application is approved, it is possible that a significant increase in the price of Bitcoin will be seen. Since, it will surely have better acceptance than the debut of the futures exchange fund that was accepted a few days ago.
This conclusion can be reached, as some investors have considered that, despite being a big step for the world of cryptocurrencies, it is quite inappropriate that it is linked to derivatives contracts, rather than to a real bitcoin.
Why could the BTC spot fund be accepted?
One of the main positive aspects of GBTC becoming an exchange-traded fund is that it is backed by real bitcoins. This is why many are looking forward to acceptance of the Grayscale ETF. Whereas, the fund that was approved by the SEC, is simply a trace of the price of the cryptocurrency.
On the other hand, and to conclude, it is worth noting that Grayscale’s attempt to convert its fund into a spot Bitcoin ETF could be successful. Since it would be forcing the Securities and Exchange Commission to approve the request; As an anonymous Grayscale representative points out: If they’re comfortable with BTC futures, they should be comfortable with the underlying market as well.