Grayscale did not come to a clear opinion on the need to re-apply for conversion GBTC in ETFs. About this after the decision of the court in the case against SEC in an interview Bloomberg said CEO Michael Sonnenshine.
On August 29, a US court granted the petition of Grayscale Investments. The Court of Appeal ordered the Commission to reconsider its decision.
In June, the asset manager sued the regulator for refusing to convert GBTC into an ETF. The company submitted an application to the SEC for product conversion in October 2021.
Bloomberg noted that the verdict does not mean that the launch of the Bitcoin ETF is guaranteed. The agency is reviewing the decision, while Grayscale has not yet developed a position.
The firm will provide additional information as possible.
According to CEO Grayscale, “there should be no additional grounds that the SEC has relied on to continue to ban these types of products from entering the market.”
Sonnenschein added that the company has not received any clarification from the regulator since the court’s decision.
On August 29, GBTC stock jumped 17%. The next day, quotes corrected by 4%. Discount to NAV dropped to 18%.
According to analyst James Seyffart, the discount will not drop to zero. This will be possible only after the official conversion of GBTC to ETF, when arbitrageurs can start working.
As part of the interview, Sonneshine promised to reduce the fee if the bitcoin trust is converted into an exchange-traded fund.
Recall that a group of GBTC holders led by Alameda sued Grayscale.
The initiative group intends to obtain from the company the right to redeem shares. It also requires compensating “exorbitant” management fees with a reduction in its level to “competitive values” (the current rate is 2% per annum).
Earlier, Bloomberg raised the likelihood of a spot Bitcoin ETF this year to 75%.
Source: Cryptocurrency
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