One of the leaders said that Grayscale may launch its Bitcoin ETF (BTC) as early as July 2022.
Speaking at a virtual event hosted by MarketWatch on October 27, David Lavalle, global head of ETF Grayscale, gave nine months to seek approval from the US government.
Shades of Gray: Time to Apply for ETFs
Grayscale, which operates the world’s largest bitcoin investment product, the Grayscale Bitcoin Trust (GBTC), reiterated this month that it was “committed” to converting it into an ETF.
Laval said the application time this week was perfect.
“We thought it was the right time to present our papers,” he said.
“Now that bitcoin futures products are away from the SEC board, they will be open to seeing applications for spot products.”
ETF submissions require an extended 240-day review period with the US Securities and Exchange Commission, which opens the possibility of the submission being approved by July.
Four ETFs were given the green light in October, all based on bitcoin futures rather than spot price, something Grayscale and others want to change.
GBTC had $38.8 billion in assets under management (AUM) as of Thursday, with all Grayscale funds now totaling $53.1 billion.
GBTC coin vs BTC/USD chart. Source: Bybt
Hayes: ETF market needs fresh capital
As Cointelegraph reported, there are high hopes that the spot ETF will be allowed to operate from November amid renewed criticism of futures products.
Related: GBTC Outperformed Bitcoin ETF Last Week
Arthur Hayes, the former head of derivatives giant BitMEX, took a closer look at the entire ecosystem this week.
“There is actually a bogus ETF with over $40 billion in AUM, the Grayscale Bitcoin Trust (GBTC). It is not technically an ETF, but it is an asset accumulation anyway. Therefore, it is not required to move assets under management from one tracker to another but rather capital New to the system,” he wrote in a dedicated blog post.
“When GBTC is added to the tracking package listed in the US, will there really be net new demand from retailers and institutions that have not yet invested in this area? I fear that the history of institutional and private investors investing AUM assets in the pool is not relevant. They want to participate they often already do it.”
Markets have spent years evaluating a possible launch of an ETF, with the SEC dropping it on several occasions, each of which has changed the price of Bitcoin less and less over time.