Greyscale and NYSE File to Create ETF

Written By Guest User

  • Digital Investment group Grayscale has jointly filed with the New York Stock Exchange (NYSE) to convert their Bitcoin Trust into a Bitcoin Spot ETF. NYSE Arca, an arm of the NYSE Group that trades equities and exchange-traded products (ETPs), “has filed Form 19b-4 with the Securities and Exchange Commission (SEC) to convert the flagship product ‘Grayscale Bitcoin Trust ($GBTC) into a Bitcoin Spot ETF.”

  • This decision was made based on the news of the SEC’s approval of a Bitcoin Futures ETF ($BITO) listing on the NYSE. While the recently listed ETF is a major step forward in terms of institutional adoption, it is based on the Bitcoin Futures market which is a derivatives market already established on the Chicago Mercantile Exchange (CME).

  • The difference between spot markets and derivatives markets is that spot markets allow you to buy and hold the actual crypto/share, whereas derivative markets allow users to “speculate” on the price without custody of the cryptocurrency. A spot driven ETF would have a far more immediately impact on Bitcoin ($BTC) prices on exchanges, as the group managing the fund would buy the actual Bitcoin.

  • The Greyscale Bitcoin Trust was launched in 2013 and now is one of the largest Bitcoin investment related products in the world, holding about 3.5% of all Bitcoin created.

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