Grayscale becomes largest Bitcoin ETF by assets under management By Investing.com
[ad_1]
© Reuters.
NEW YORK – Grayscale, a leading digital currency asset manager, has successfully converted its Trust (GBTC) into an exchange-traded fund (ETF), now recognized as the largest Bitcoin ETF by assets under management. This milestone was achieved following the U.S. Securities and Exchange Commission’s (SEC) approval on January 10, 2024, to allow GBTC to directly track the price of Bitcoin.
The approval came after a federal court decision in August mandated the SEC to re-evaluate Grayscale’s proposal for the conversion. Since the ruling, Grayscale has worked to align GBTC’s structure with that of an ETF, which aims to reflect the market price of Bitcoin more accurately.
The new ETF maintains a closed-end structure and charges investors an annual fee of 2.0%. This fee structure and the trust’s conversion into an ETF are significant developments for institutional investors seeking indirect exposure to Bitcoin.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
[ad_2]
Source link
© Reuters.
NEW YORK – Grayscale, a leading digital currency asset manager, has successfully converted its Trust (GBTC) into an exchange-traded fund (ETF), now recognized as the largest Bitcoin ETF by assets under management. This milestone was achieved following the U.S. Securities and Exchange Commission’s (SEC) approval on January 10, 2024, to allow GBTC to directly track the price of Bitcoin.
The approval came after a federal court decision in August mandated the SEC to re-evaluate Grayscale’s proposal for the conversion. Since the ruling, Grayscale has worked to align GBTC’s structure with that of an ETF, which aims to reflect the market price of Bitcoin more accurately.
The new ETF maintains a closed-end structure and charges investors an annual fee of 2.0%. This fee structure and the trust’s conversion into an ETF are significant developments for institutional investors seeking indirect exposure to Bitcoin.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
About The Author
