The first bitcoin fund on the market has reached $8 billion in assets under management, and is only looking to expand. The largest digital currency by market cap could be an exchange-traded fund (ETF) within two months as it approaches a new high of $40 Billion AUM.吧
The “grayscale bitcoin trust” is one of the biggest Bitcoin funds in the world. The fund has a current AUM of $38 billion, and it could become an ETF by July as GBTC nears $40 billion.
Grayscale’s Bitcoin (BTC) exchange-traded fund (ETF) might debut as early as July 2022, according to one of the company’s executives.
Grayscale’s worldwide head of ETFs, David LaValle, set a nine-month schedule for clearance by US authorities during a MarketWatch virtual event on Oct. 27.
Grayscale: It’s time to apply for the ETF.
Grayscale, which administers the Grayscale Bitcoin Trust (GBTC), the world’s most popular Bitcoin investment product, underlined this month that it is “dedicated” to turning it into an ETF.
The timing for filing the application this week, according to LaValle, was optimal.
“We believed it was the ideal moment to file our paperwork,” he said.
“Now that bitcoin futures products have been taken off the SEC’s plate, they would be willing to look at spot-based product registrations.”
ETF applications must go through a 240-day review process with the Securities and Exchange Commission (SEC), with approval possible by July.
Four ETFs were approved in October, all of which are based on Bitcoin futures rather than spot, which Grayscale and others want to modify.
As of Thursday, GBTC has $38.8 billion in assets under management (AUM), bringing the total AUM of all Grayscale funds to $53.1 billion.
Chart of GBTC holdings vs. BTC/USD. Bybt is the source.
Hayes: The ETF industry needs “new money”
As reported by Cointelegraph, there are great expectations that spot ETFs will be permitted to trade starting in November, despite new criticism of futures-based products.
Last week, GBTC outperformed Bitcoin ETFs in terms of returns.
JUST SAW ANALYSIS OF THE FIRST FUTURES ROLL DATE FOR THE #BITCOIN ETFS BY A FUND MANAGEMENT TRADER (they roll to new front-month contract). It’s not pretty, as many predicted—ETF investors suffer significant tracking inaccuracy. Since the start of the ETF, there have been two flash collapses in the price of #BTC. Ugh
Caitlin Long (@CaitlinLong_) (@CaitlinLong_) (@CaitlinLong_) (@Cait 29th of October, 2021
This week, Arthur Hayes, the former CEO of derivatives trading behemoth BitMEX, provided a more damning assessment of the whole ecosystem.
“The Grayscale Bitcoin Trust, a pseudo-ETF with over $40 billion in AUM, already exists” (GBTC). Although it isn’t officially an ETF, it has amassed a sizable amount of assets. “What is necessary is new money into the system, not a shift of AUM from one tracker product to another,” he said in a dedicated blog post.
“Will there be net new demand from retail traders and institutions that aren’t already involved in the area when GBTC is introduced to the mix of US-listed tracker products?” I’m concerned that the story of institutional and retail investors pouring money into the complex is misleading, since those who want to participate are already doing so.”
Markets have had years to price in the possibility of an ETF launch, with consecutive SEC denials driving the Bitcoin price lower and lower over time.
The author’s thoughts and opinions are completely his or her own and do not necessarily represent those of Cointelegraph.com. Every investing and trading choice has risk, so do your homework before making a decision.
The “when to buy bitcoin 2021” is a question that many people ask themselves. The most popular answer is that it’s best to wait until 2020 and then start buying. However, the “Biggest Bitcoin fund in the world could become ETF by July as GBTC nears $40 billion AUM” is a possible solution for those who want to get involved sooner.
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