Grayscale announced that the United States Securities and Exchange Commission (SEC) has approved the company’s spot Bitcoin ETF (Exchange-Traded Fund) proposal. It was noted that this approval occurred on January 10.
Grayscale CEO Michael Sonnenshein described this development as “a major step for GBTC investors and everyone who recognizes the future potential of cryptocurrencies.” Sonnenshein emphasized that this historic decision is the result of both the patience of investors and the efforts of the company and its partners.
Grayscale revealed that the SEC approved a rule change proposal allowing the New York Stock Exchange Arca to list shares of the Grayscale Bitcoin Trust (GBTC). This means that GBTC can now be traded as a spot Bitcoin ETF alongside similar funds.
The company reported that GBTC shares will begin trading on the NYSE Arca on Thursday, January 11, and that transactions in the over-the-counter (OTC) markets will be halted. With this transition, GBTC shares will automatically be upgraded to spot Bitcoin ETF shares on NYSE Arca. Current GBTC shareholders do not need to take any action in this situation.
Grayscale stated that following the initial listing, the Trust plans to issue additional shares and engage in simultaneous creation and redemption transactions.
Grayscale Holds a Significant Place Among ETF Applications
Grayscale’s application was approved along with ten other spot Bitcoin ETF applications. Among these applications, Grayscale’s proposal played a particularly notable role in the ETF approval process in recent months.
Grayscale’s application was made in mid-2022 and had been under review for a longer period compared to other applications. Other applicants started submitting new applications to the SEC from the summer of 2023.
Grayscale sued the SEC to expedite the review of its application and won a decision in August requiring this review. The existence of GBTC prior to its conversion to an ETF also influenced its past value. Grayscale suspended the buybacks of GBTC in 2021, leading the fund to trade at a discount. Prior to the most recent approval, this discount rate decreased, and according to YCharts, the current discount of GBTC was recorded at 6.53%.
