Grayscale hires its ETF team as markets await SEC decision
Date: 2023-08-18 Author: Karina Ziganova Categories: BLOCKCHAIN, BUSINESS
Grayscale, a well-known American crypto asset manager, teased the hiring process of his ETF (exchange-traded fund) team today, signaling an upbeat outlook on his longtime Bitcoin ETF bid.
The announcement was made on Twitter, which has already amassed over half a million views, further underscoring the great interest of the financial community in this topic.
For a long time
The move follows a broader industry debate regarding the US Securities and Exchange Commission's (SEC) stance on bitcoin ETFs. Grayscale, in particular, is in a tug-of-war with the SEC over its decision to approve a leveraged bitcoin ETF while rejecting spot bids for bitcoin ETFs, a position that Grayscale called "arbitrary."
Last year, the SEC rejected Grayscale's proposal to convert its Bitcoin Trust (GBTC) into an ETF, prompting the firm to take legal action. They argued that the spot ETF was indistinguishable from the futures ETF, which had previously been greenlit by the SEC.
Latest data from ycharts showed that GBTC's discount to net asset value (NAV) narrowed to 27.49%, with shares trading near the $20 mark. What’s more, GBTC stock has surged nearly 43% over the past month, outpacing Bitcoin’s 17% gain over the same period. Market analysts have attributed this performance spike to BlackRock's bid for a Bitcoin spot ETF, prompting other traditional financial institutions, including Fidelity, to file for similar ETFs.
The core of Grayscale's argument against the SEC hinges on the approval of a 2x leveraged bitcoin futures ETF that uses leverage to double the daily performance of the S&P CME's Daily Bitcoin Futures Index. Grayscale claims this exposes investors to an even riskier investment product than traditional exchange-traded bitcoin futures products.
If the SEC decision leans in favor of grayscale, it could set a precedent for approving future bitcoin ETFs, potentially changing the crypto investment landscape. With many financial stakeholders eagerly awaiting the SEC's verdict, Grayscale's hint of expanding its ETF team indicates the firm's willingness to move based on the outcome.
