According to CNBC and Bitcoin Magazine, investment firm Grayscale Investments LLC – which operates the Grayscale Bitcoin Trust, or GBTC – is set to file for SEC approval for a spot Bitcoin ETF this month.
Those Bitcoin ETFs are futures contracts based ETFs, and since those have now been confirmed to be allowed, Grayscale has made a bolder move in applying for a spot Bitcoin ETF.
First Spot Bitcoin ETF
CNBC’s financial analysts commented that a spot ETF is a more significant development for the cryptocurrency markets as it would ‘represent an investment backed by Bitcoins, not derivatives tied to it‘.
Grayscale, founded by billionaire Barry Silbert who has been buying Bitcoin since 2012, has stated that the SEC’s preference for futures based ETFs is ‘shortsighted‘ as they would incur more fees for investors.
A spot Bitcoin ETF would be physically settled in BTC, with instant delivery and more accurately track the price of Bitcoin, reducing uncertainty.
Grayscale holds $38.7 billion in assets, and is considered to have been one of the drivers behind the 2021 Bitcoin bull run from $20,000 to over $60,000.
Their application for a spot Bitcoin ETF will now enter a 75-day review period pending SEC approval.
eToro – Our Recommended Investing Platform
- CySEC, FCA & ASIC regulated
- Millions of users trading Crypto, ETFs, Commodities, Stocks, Forex
- Zero Commission Fees, Free Demo Account
- Deposit via Debit or Credit card, Bank wire, Paypal, Skrill, Neteller
- Copytrade Winning Investors – 83.7% Average Yearly Profit