Crypto Giant Grayscale 100% Committed To Convert Its Bitcoin Trust Into ETF

Cryptocurrency asset management firm Grayscale is reiterating its commitment to launching a Bitcoin exchange-traded fund (ETF).

In a blog post, Grayscale pledges to transform its Bitcoin investment product known as the Grayscale Bitcoin Trust (GBTC) into an ETF.

“First and foremost we wish to make clear: we are 100% committed to converting GBTC into an ETF.”

Per Grayscale, transforming GBTC into an ETF will happen if and when the U.S. Securities and Exchange Commission (SEC) allows it. The crypto asset manager points out that it first applied to issue a Bitcoin ETF five years ago.

“Grayscale first submitted an application for a Bitcoin ETF in 2016 and spent the better part of 2017 in conversations with the SEC. Ultimately, we withdrew our application because we believed the regulatory environment for digital assets had not advanced to the point where such a product could successfully be brought to market.”

While there are other entities in the race for the first Bitcoin ETF, Grayscale says it is confident in its “current positioning and engagement with the SEC.”

Lower management fees is one of the benefits that GBTC investors will enjoy once it morphs into an ETF. Currently, Grayscale charges an annual administration and safekeeping fee of 2% on the GBTC product. Higher fees of between 2.5% and 3% are charged on its other cryptocurrency products.

Grayscale also highlights that it aims to transform all of its products into ETFs, including the Grayscale Basic Attention Token Trust, the Grayscale Chainlink Trust, Grayscale Decentraland Trust, Grayscale Filecoin Trust, Grayscale Horizen Trust, Grayscale Livepeer Trust, Grayscale Stellar Lumens Trust, Grayscale Zcash Trust, Grayscale Bitcoin Cash Trust (BCHG), Grayscale Litecoin Trust (LTCN), Grayscale Ethereum Classic Trust (ETCG), Grayscale Digital Large Cap Fund (GDLC), Grayscale Ethereum Trust (ETHE).

“Each Grayscale product is at various stages of this lifecycle and our intention has always been to convert these products into an ETF when permissible.”

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