The world’s largest Bitcoin fund could become an ETF in July 2022 as GBTC hits nearly $ 40 billion in AUM

According to one of the executives, Grayscale could launch a Bitcoin Exchange Traded Fund (ETF) as early as July 2022.

At a virtual event hosted by MarketWatch on October 27th, David LaValle, Global Director of Grayscale ETFs, gave a nine month deadline to await US regulatory approval.

Grayscale: It’s time to apply for an ETF

As the global operator of the largest volume Bitcoin investment product Grayscale Bitcoin Trust (GBTC), Grayscale confirmed this month that it is “committed” to an ETF.

LaValle said it would be ideal to apply this week.

“We think now is the perfect time to apply. Now that bitcoin futures products are out of focus for the SEC, they will be looking at the filings of spot products. “

The United States Securities and Exchange Commission (SEC) requires 240 days to review ETF applications. Approval for the product is therefore expected in July 2022.

In October 2021, four ETFs were given the green light, all of which are based on Bitcoin futures rather than spot-based, which Grayscale and others want to change.

GBTC has $ 38.8 billion in assets (AUM) under management as of Thursday, out of total assets of $ 53.1 billion across all existing Grayscale funds.

Inventory from Conditions and price table BTC / USD | The source: Bybt

ETF market needs “new capital”

In view of the criticism of futures-based products, the market is currently hoping that a spot ETF will be able to operate from November.

Arthur Hayes, former director of derivatives trading giant BitMEX, has demonstrate a more devastating view of the entire ecosystem this week.

“We already have an ETF-like fund with over $ 40 billion in AUM, the Grayscale Bitcoin Trust (GBTC). Technically, it’s not an ETF, but it’s still a huge treasure trove of assets. So what is needed is not the relocation of AUM from one tracking product to another, but new means into the system. When GBTC is added to the US-listed suite of tracking products, will there really be new demand from retail and institutional dealers who have not yet invested in the space? I fear the story of new institutional and retail investors adding AUM to these products will be disappointing as most of those who wanted to get involved have already joined. “

The market has had years to evaluate a possible ETF launch. At the same time, the SEC declined the offer on numerous occasions, and the Bitcoin price moved less and less each time.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

At home at home

According to Cointelegraph

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page