Andriy Onufriyenko
- Grayscale intends to file an application with the SEC to convert its bitcoin fund into a spot ETF, according to CNBC Friday.
- The company's spot ETF would be backed by bitcoin and have no derivatives attached to it.
- The first bitcoin futures ETF is set to start trading this week after the SEC approved it on Friday.
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Grayscale intends on converting its main bitcoin trust, which is the largest such fund in the world, to a spot exchange-traded fund (ETF) this week, according to a CNBC report Friday.
The spot bitcoin ETF would be backed purely by bitcoin and have no derivatives attached to it, unlike bitcoin futures ETFs.
Grayscale was waiting for the Securities and Exchange Commission to approve the first bitcoin futures ETF before they filed for this change, a person with knowledge of the matter told CNBC. The idea was if the SEC approved a bitcoin futures ETF, it would indicate the regulator was comfortable with how the underlying spot market functions.
Grayscale was not immediately available to comment when contacted by Insider.
The SEC approved ProShares' Bitcoin Strategy ETF on Friday – a market first. The fund is set to start trading this week. This will give investors exposure to the bitcoin futures market, but not the spot market.
Bitcoin has been steadily rallying in recent weeks and was last heading towards this year's record highs near $65,000.
The Grayscale Bitcoin Trust has $38.7 billion assets under management. Cathie Woods' Ark Invest is one fund that has bought into the trust as a means of participating in crypto.
Grayscale has recently expanded its offering of cryptocurrencies and added the likes of decentralized finance token sol and decentralized exchange token uniswap to its funds.