Grayscale Acknowledges Spot Bitcoin ETF Approval, Says Trading Will Begin Thursday

CEO Michael Sonnenshein called the event “a landmark step forward.

Grayscale acknowledged that the U.S. Securities and Exchange Commission (SEC) approved its spot bitcoin ETF proposal on January 10th.

Michael Sonnenshein, CEO of Grayscale, said:

“The approval of the Spot Bitcoin ETF in the U.S. is a landmark step forward for GBTC investors and all those who realize the potential for cryptocurrencies to transform our future. Today’s historic outcome is a testament to the unwavering patience and support of GBTC investors and the hard work and dedication of [Grayscale and our partners.” Bitcoin mining

Grayscale explained that the U.S. Securities and Exchange Commission (SEC) approved a proposed rule change that would allow NYSE Arca to list shares of Grayscale Bitcoin Trust under the GBTC ticker symbol.

Grayscale says this will allow GBTC to operate as a spot bitcoin exchange-traded fund (ETF) alongside similar funds.

GBTC shares are expected to begin trading on Thursday, January 11th on NYSE Arca, the company said. GBTC shares will cease trading on the over-the-counter (OTC) market and will be automatically listed on NYSE Arca, the company added. As a spot bitcoin ETF stock at the time, Grayscale noted that current GBTC shareholders need not take any action in this regard.

The company said it intends to allow the trust to issue additional shares after the initial listing and to make additions and redemptions at the same time.

Grayscale stands out among ETF applicants

Grayscale’s application was approved along with ten other spot bitcoin ETF applications. However, its application is somewhat unique and played a significant role in the months leading up to the current ETF’s approval. ETC Miner

Grayscale’s proposal has been active since mid-2022. By contrast, many other applicants (including those who had previously applied for the Spot Bitcoin ETF) have submitted new ETF applications to the SEC since the summer of 2023.

Perhaps most notably, Grayscale went to court to force the SEC to review its proposal.Grayscale obtained a ruling in August requiring such a review.

The fact that GBTC existed prior to the ETF conversion has also had an impact on its past value. Grayscale stopped redemptions of GBTC in 2021, and the fund began trading at a discount around that time. Prior to the latest approval, that gap narrowed: YCharts reports that GBTC is currently discounted -6.53%.