{"id":405789,"date":"2022-02-15T07:38:45","date_gmt":"2022-02-15T04:38:45","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/overwhelming-support-for-grayscale-btc-trust-etf-conversion-proposal\/"},"modified":"2022-02-15T07:38:45","modified_gmt":"2022-02-15T04:38:45","slug":"overwhelming-support-for-grayscale-btc-trust-etf-conversion-proposal","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/overwhelming-support-for-grayscale-btc-trust-etf-conversion-proposal\/","title":{"rendered":"# Overwhelming support for Grayscale BTC Trust ETF conversion proposal"},"content":{"rendered":"<p>&#8220;<strong># Overwhelming support for Grayscale BTC Trust ETF conversion proposal  <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDIvODQzMmY4YjUtNWZkNy00YTlkLThiNDYtN2RhNzdkOGU0OWUxLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-128018ef>The U.S. Securities and Exchange Commission has allowed comments and feedback on a proposed rule change that would convert Grayscale\u2019s Bitcoin Trust to a spot-based exchange-traded fund (ETF).<\/p>\n<p>A notice of filing a proposed rule change to list and trade shares of Grayscale Bitcoin Trust as a spot-based ETF has generated a long list of comments with a large majority in <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roval.<\/p>\n<p>Bloomberg\u2019s senior ETF analyst Eric Balchunas had a look through some of the more recent comments on Feb. 15 observing that 95% are in favor of the proposed conversion.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Just glancing through the many comments from ppl to the SEC re converting <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24GBTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$GBTC<\/a> to an ETF and 95% are in favor of it and most using real names and pointing to the stupefying fact that futures ETF ok but spot not. eg: <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/j15iNYnh8R\">pic.twitter.com\/j15iNYnh8R<\/a><\/p>\n<p>\u2014 Eric Balchunas (@EricBalchunas) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/EricBalchunas\/status\/1493310327328591875?ref_src=twsrc%5Etfw\">February 14, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\nSeveral respondents to the SEC<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.sec.gov\/comments\/sr-nysearca-2021-90\/srnysearca202190.htm\"> proposal<\/a> argued that the regulator had already approved futures-based exchange-traded products so a spot-based product should logically come next. The U.S. risks falling behind other countries such as Canada which has already approved such investment products, others added.<\/p>\n<p>A spot-based fund would be physically backed by the asset itself as opposed to backing by futures contracts from the Chicago Mercantile Exchange (CME) which is how existing Bitcoin ETFs operate.<\/p>\n<p>Another comment pointed out that the current fund creates arbitrage opportunities that can take advantage of retail traders.<\/p>\n<blockquote><p>\u201cThe current structure of the closed end fund has led to price of the fund trading at a premium and discount to net asset value which has created arbitrage opportunities for more sophisticated traders to take advantage of unsuspecting retail investors.\u201d<\/p><\/blockquote>\n<p>Grayscale\u2019s Bitcoin Trust has been trading at a massive discount in recent months as investors speculate and hedge on the ETF being approved by the SEC. At the time of writing, the fund was trading at a discount of 24.75% according to<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/ycharts.com\/companies\/GBTC\/discount_or_premium_to_nav\"> Ycharts<\/a>. This means that with BTC currently priced at around $43,600, the discounted fund price would be equivalent to around $32,500.<\/p>\n<p>One investor said that he invested his life savings into the fund and is tired of the SEC trying to protect people, adding that the regulator is just out to \u201chelp the rich.\u201d The financial regulator has repeatedly cited a lack of investor protection as a reason for delaying or rejecting crypto-based investment products. <\/p>\n<p><strong><em>Related:<\/em><\/strong><strong><em> <\/em><\/strong><strong><em>First US Bitcoin ETF a \u2018dud\u2019 in 2021 as GBTC discount stays near record lows<\/em><\/strong><\/p>\n<p>Grayscale originally hinted at converting the world\u2019s largest BTC fund into a spot ETF in October. On Feb. 4, the SEC delayed the decision on the conversion of the $37 billion GBTC fund citing the same familiar concerns regarding manipulation, liquidity, and transparency.<\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/overwhelming-support-for-grayscale-btc-trust-etf-conversion-proposal\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Overwhelming support for Grayscale BTC Trust ETF conversion proposal &#8221; The U.S. Securities and Exchange Commission has allowed comments and feedback on a proposed rule change that would convert Grayscale\u2019s Bitcoin Trust to a spot-based exchange-traded fund (ETF). A notice of filing a proposed rule change to list and trade shares of Grayscale Bitcoin&#8230;<\/p>\n","protected":false},"author":1,"featured_media":405790,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDIvODQzMmY4YjUtNWZkNy00YTlkLThiNDYtN2RhNzdkOGU0OWUxLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,75849,76550,74898],"class_list":["post-405789","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-etf","tag-grayscale","tag-sec"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/405789","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=405789"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/405789\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/405790"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=405789"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=405789"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=405789"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}