Grayscale seeks to revamp Bitcoin trust amid ETF competition By Investing.com
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Grayscale Investments is taking strategic steps to enhance its Grayscale Trust (GBTC) as it prepares for a potential upgrade to an exchange-traded fund (ETF) listed on NYSE Arca. The asset management firm has filed with shareholders to amend its trust agreement, signaling readiness for a competitive edge in the evolving cryptocurrency ETF landscape.
The proposed changes include a shift from monthly to daily fee payments while retaining the current 2% fee rate, a move that aligns with the practices of leading ETF applicants. Additionally, Grayscale plans to implement Coinbase (NASDAQ:) Custody’s omnibus accounts to facilitate more efficient share transactions.
These updates are significant as GBTC has not undergone major changes in five years. They come at a time when industry analysts are optimistic about the Securities and Exchange Commission (SEC) potentially approving a wave of spot Bitcoin ETFs by the first quarter of 2024. Grayscale’s initiative reflects an industry-wide eagerness to attract institutional investors amid growing competition from major players like BlackRock (NYSE:).
While Grayscale’s 2% management fee is notably higher than competitors’ fees, which range from 0.7% to 1% as reported by Matrixport, the firm has not confirmed any plans to reduce this fee. Shareholders have been given a 20-day period from the filing date to cast their votes on the proposed changes.
In parallel developments, BlackRock has been actively engaging with the SEC’s Trading and Markets division to discuss an updated in-kind redemption process. SEC Chair Gary Gensler recently outlined the division’s responsibilities concerning ETF oversight. Meanwhile, Pando, another investment firm, has applied for a spot Bitcoin ETF, with analysts predicting a strong chance of approval in January.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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© Reuters.
Grayscale Investments is taking strategic steps to enhance its Grayscale Trust (GBTC) as it prepares for a potential upgrade to an exchange-traded fund (ETF) listed on NYSE Arca. The asset management firm has filed with shareholders to amend its trust agreement, signaling readiness for a competitive edge in the evolving cryptocurrency ETF landscape.
The proposed changes include a shift from monthly to daily fee payments while retaining the current 2% fee rate, a move that aligns with the practices of leading ETF applicants. Additionally, Grayscale plans to implement Coinbase (NASDAQ:) Custody’s omnibus accounts to facilitate more efficient share transactions.
These updates are significant as GBTC has not undergone major changes in five years. They come at a time when industry analysts are optimistic about the Securities and Exchange Commission (SEC) potentially approving a wave of spot Bitcoin ETFs by the first quarter of 2024. Grayscale’s initiative reflects an industry-wide eagerness to attract institutional investors amid growing competition from major players like BlackRock (NYSE:).
While Grayscale’s 2% management fee is notably higher than competitors’ fees, which range from 0.7% to 1% as reported by Matrixport, the firm has not confirmed any plans to reduce this fee. Shareholders have been given a 20-day period from the filing date to cast their votes on the proposed changes.
In parallel developments, BlackRock has been actively engaging with the SEC’s Trading and Markets division to discuss an updated in-kind redemption process. SEC Chair Gary Gensler recently outlined the division’s responsibilities concerning ETF oversight. Meanwhile, Pando, another investment firm, has applied for a spot Bitcoin ETF, with analysts predicting a strong chance of approval in January.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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