Grayscale acknowledged that the U.S. Securities and Exchange Commission (SEC) approved its spot Bitcoin ETF proposal on January 10.
Grayscale CEO Michael Sonnenshein said:
“The approval of spot Bitcoin ETFs in the United States is a monumental step forward for GBTC investors and everyone aware of crypto’s potential to transform our future. Today’s historic outcome is a tribute to GBTC’s investors for their unwavering patience and support [Grayscale] and our partners for their hard work and dedication.”
Grayscale explained that the U.S. Securities and Exchange Commission (SEC) has approved a proposed rule change that would allow NYSE Arca to list shares of the Grayscale Bitcoin Trust under the GBTC ticker.
Grayscale stated that this would allow GBTC to operate as a Bitcoin Exchange Traded Fund (ETF) alongside similar funds.
The company said shares of GBTC are expected to begin trading on NYSE Arca on Thursday, January 11. It additionally said that GBTC shares will stop trading on over-the-counter (OTC) markets and will be automatically listed on NYSE Arca. at the time as spot Bitcoin ETF shares. Grayscale noted that current GBTC shareholders do not need to take any action in this regard.
The company said it plans for the Trust to issue additional shares after the initial listing and conduct simultaneous creations and redemptions.
Shades of gray were prominent among ETF applicants
Grayscale’s application received approval alongside ten other spot Bitcoin ETF applications. However, its application is somewhat unique and featured prominently in the months leading up to the current ETF approvals.
Grayscale’s proposal has been active since mid-2022. In contrast, many other applicants – including those who previously applied for a spot Bitcoin ETF – have filed new ETF applications with the SEC starting in summer 2023.
Perhaps most notably, Grayscale went to court to force the SEC to reconsider its proposal. Grayscale received a ruling in August that required that review.
The fact that GBTC existed before the ETF conversion also affected its past value. Grayscale halted GBTC redemptions in 2021 and the fund began trading at a discount around that time. That difference narrowed before the latest approval: YCharts reports that GBTC’s current discount is -6.53%.
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