Grayscale filed for a Bitcoin-backed call ETF on January 11, as per a company filing and several external reports.
In a statement to Reuters, Grayscale CEO Michael Sonnenshein said:
“This should be received as a statement that we have not only launched GBTC as a spot bitcoin ETF, but also as a statement of our commitment to the growth of the product and the ecosystem surrounding the product itself.”
Grayscale’s N-1A filing with the U.S. Securities and Exchange Commission (SEC) states that the new fund is intended to generate current income and participate in GBTC’s price returns. GBTC is an existing Bitcoin investment fund from Grayscale that was eventually converted into an exchange-traded fund on January 10.
Covered call ETFs offer shares of a fund that relies on a covered call investment strategy. Grayscale’s latest proposal could offer investors seemingly new benefits: Investopedia notes that covered call ETFs can provide investors with both stable income and risk protection, while eliminating the need to spend time and money creating their own covered call -strategy.
The N1-A filing means that Grayscale has filed a registration statement for the fund. However, the filing also notes that its content is not complete.
Grayscale played a key role in ETF approval
Grayscale is just one of eleven Bitcoin ETF applicants that received approval from the US Securities and Exchange Commission (SEC) on January 10.
The securities agency acknowledged that a legal challenge that forced Grayscale to revise its filing led to the latest round of fund approvals.
SEC Chairman Gary Gensler explained that the court found that the SEC had failed to “adequately explain its reasoning” for disapproving Grayscale’s filing. In particular, the SEC failed to explain why it approved Bitcoin futures ETFs while rejecting spot Bitcoin ETFs due to a risk of market manipulation. However, Gensler himself did not recognize this precise point.
Gensler ultimately called approval of the relevant exchange-traded products the “most sustainable path forward” in light of Grayscale’s case and its outcome.
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