Grayscale Set to File Spot Bitcoin ETF Application

According to CNBC and Bitcoin Magazine, investment firm Grayscale Investments LLC – which operates the Grayscale Bitcoin Trust, or GBTC – is set to file for SEC approval for a spot Bitcoin ETF this month.

In previous Bitcoin ETF news, Nasdaq approved the Valkyrie Bitcoin ETF and the Proshares Bitcoin ETF is set to launch trading tomorrow, October 19th 2021.

Those Bitcoin ETFs are futures contracts based ETFs, and since those have now been confirmed to be allowed, Grayscale has made a bolder move in applying for a spot Bitcoin ETF.

First Spot Bitcoin ETF

CNBC’s financial analysts commented that a spot ETF is a more significant development for the cryptocurrency markets as it would ‘represent an investment backed by Bitcoins, not derivatives tied to it‘.

Grayscale, founded by billionaire Barry Silbert who has been buying Bitcoin since 2012, has stated that the SEC’s preference for futures based ETFs is ‘shortsighted‘ as they would incur more fees for investors.

A spot Bitcoin ETF would be physically settled in BTC, with instant delivery and more accurately track the price of Bitcoin, reducing uncertainty.

Grayscale holds $38.7 billion in assets, and is considered to have been one of the drivers behind the 2021 Bitcoin bull run from $20,000 to over $60,000.

Their application for a spot Bitcoin ETF will now enter a 75-day review period pending SEC approval.

If approved traders will be able to invest in the Grayscale Bitcoin ETF on regulated exchange eToro, where they can also buy Bitcoin.