Should GBTC be converted into an exchange-traded fund (ETF)?

(Nikhilesh De/CoinDesk) As the Grayscale Bitcoin Trust (GBTC) discount – the value of the shares versus the underlying asset – continues to trade in the double digits, the Securities and Exchange Commission (SEC) has rejected the company’s application to convert it into an exchange-traded fund (ETF).

Can GBTC convert to a spot bitcoin ETF?

That said, when a market participant like Grayscale disagrees with how the SEC is interpreting regulations that would permit GBTC to convert to a spot Bitcoin ETF, we can either appeal to Congress to change the law (which includes a whole host of uncertainties), appeal to the courts, or do nothing.

Should grayscale flip GBTC into an ETF?

Flipping GBTC into an ETF would solve a persistent issue for Grayscale: the trust’s deep discount to its underlying holdings. Unlike an ETF, GBTC shares can’t be created and redeemed to keep pace with shifting demand. That’s effectively turned GBTC into a closed-end fund, with GBTC’s price trading 29% below its net-asset value.

What is the purpose bitcoin ETF (CBTC)?

“CBTC is a fund-of-funds and invests directly in the $1.7 billion world first spot Bitcoin ETF, the Purpose Bitcoin ETF,” he said.