According to a source close to CNBC, Grayscale Investments plans to apply to convert the world’s biggest Bitcoin fund into a spot ETF early next week.
Grayscale Investments close to filing application for spot Bitcoin ETF
The source said the investment firm had intended to file with the Securities and Exchange Commission (SEC) shortly after the agency allowed competitors to attempt to create Bitcoin ETFs based on futures contracts. That happened late Friday.
The source said that the Grayscale application would begin a 75-day review period. If approved, Grayscale’s ETF would be another step in legitimizing the nascent crypto asset class. Bitcoin has proven resilient, hitting an all-time high above $60,000 on Friday, even after setbacks, including being banned by China last month.
The Bitcoin-futures ETF’s impending debut, while significant, is considered a preliminary step by some crypto investors because it would be linked to derivative contracts traded on the Chicago Mercantile Exchange (CME) rather than actual Bitcoin.
The cryptocurrency investment pioneer allowing institutional investors like Cathie Wood of Ark Invest to bet on Bitcoin initially filed a public application for an ETF in January 2017. In October of that year, it withdrew its application after the SEC indicated that it was uncomfortable with the BTC market.
Grayscale’s move could be an attempt to force the SEC to step in. According to the source, if they are comfortable with bitcoin futures, regulators should also be comfortable with the underlying market. Of course, the SEC can still choose to delay or deny Grayscale’s application.
At the time of writing, after this news spread, BTC rallied over $62,000 and is hovering around the $62,380 zone.
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