The U.S. Securities and Exchange Commission (SEC) has given its approval to Grayscale’s spot Bitcoin ETF proposal, marking a significant milestone for both GBTC investors and the potential transformation of the crypto industry. Grayscale CEO Michael Sonnenshein expressed his gratitude, acknowledging the patience and support of GBTC investors and the dedication of Grayscale and its partners in achieving this historic outcome.
With the SEC’s approval, NYSE Arca will now be able to list shares of the Grayscale Bitcoin Trust under the GBTC ticker, enabling it to operate as a spot Bitcoin exchange-traded fund (ETF) alongside similar funds. Starting from Thursday, Jan. 11, GBTC shares will be traded on NYSE Arca. As a result, GBTC shares will no longer be available for trading on over-the-counter (OTC) markets, as they will automatically be uplisted to NYSE Arca as spot Bitcoin ETF shares. Current GBTC shareholders do not need to take any action in light of these changes.
Grayscale’s application for a spot Bitcoin ETF was one of eleven approved by the SEC. However, its proposal stands out due to its lengthy period of activity. While other applicants filed new ETF applications in the summer of 2023, Grayscale’s proposal has been in motion since mid-2022. Its persistence and determination even led to a court case that compelled the SEC to review its proposal, resulting in the August ruling.
The Implications of GBTC’s Past Value
A notable aspect of the GBTC conversion is its existence before the ETF approval. In 2021, Grayscale halted redemptions of GBTC, causing the fund to trade at a discount. However, this disparity decreased leading up to the recent approval, with YCharts reporting GBTC’s current discount at -6.53%.
The SEC’s approval of Grayscale’s spot Bitcoin ETF proposal is not only a major achievement for GBTC investors but also a significant step forward for the broader crypto industry. This development highlights the growing acceptance and recognition of cryptocurrencies as valuable assets in the traditional financial landscape. With GBTC now operating as a spot Bitcoin ETF, it opens up new opportunities for investors to participate in the crypto market through a regulated and accessible vehicle.
Grayscale’s successful approval of its spot Bitcoin ETF proposal by the SEC is a testament to the unwavering support of GBTC investors, as well as the diligent efforts of Grayscale and its partners. As the crypto industry continues to evolve and mature, this milestone paves the way for further innovation and growth, ultimately transforming our future.