Grayscale’s GBTC took the lead as the inaugural spot Bitcoin exchange-traded fund (ETF) to commence trading following approval from the Securities and Exchange Commission (SEC). The historic event unfolded early Thursday morning as GBTC initiated pre-market trading at 4 am EST.
After a decade of attempts, spot bitcoin ETFs have finally been approved in the United States. Wednesday, the Securities and Exchange Commission authorized key filings from markets to list the groundbreaking products. 11 of the top applications for spot Bitcoin exchange-traded funds have been approved after a decade of rejections. Companies such as Grayscale, Fidelity, iShares, and ARK 21Shares have received approval for their ETFs.
Jennifer Rosenthal, Head of Communications at Grayscale, officially confirmed the commencement via an email, marking a significant milestone for the cryptocurrency industry. The SEC’s nod on Wednesday approved Grayscale’s conversion of its $27 billion Bitcoin trust into an ETF. This decision echoed across the industry as the SEC greenlit a series of applicants, signaling a seismic shift in the regulatory landscape.
Trading at $42.40 in pre-trading on the NYSE Arca, GBTC stands out with a notable 1.5% fee, in stark contrast to its competitors charging between 0.2% and 0.9%. Grayscale seems to bank on its head start, leveraging its substantial $27 billion in assets for a competitive edge in the burgeoning ETF market.
Senior Bloomberg analyst Eric shared insights on Twitter, acknowledging GBTC’s swift transition into an ETF. The move, now adorned with the ETF tag and a dedicated Bloomberg DES page, positions GBTC as a potent player entering the market.
However, the analyst noted a potential challenge – GBTC‘s 1.5% fee, a figure that raises eyebrows within the industry. As GBTC brings substantial volume to the market, the analyst speculates on the intriguing dynamics that may unfold, balancing firepower with a fee that might deter some advisors. The approval of a spot bitcoin ETF has also increased the optimism of ETH traders, who believe that Ethereum ETF could be the next in line.
