SEC Delays Decision on Grayscale's Ethereum ETF Offering Until 2024
The SEC has postponed its decision on Grayscale's Ethereum ETF offering. The proposed rule change would allow NYSE Arca to list and trade shares of the Grayscale Ethereum Trust. The SEC cited the need for more time to consider the proposal and the issues raised. The new deadline for a decision is January 25, 2024.
Grayscale: Bitcoin is a digital alternative to physical gold
Grayscale stated on X platform that Bitcoin is a digital substitute for physical gold. Bitcoin benefits from some of the factors that push up gold prices, such as a decrease in real interest rates. Grayscale analysts believe that the Fed's increase in real interest rates may suppress the price of Bitcoin, while interest rate cuts may help valuation rebound. Any signs indicating that interest rate cuts may begin relatively early next year could support the price of Bitcoin.
Grayscale GBTC negative premium rate is currently 10.15%
According to Coinglass data, the current total value of Grayscale's holdings is about $38.769 billion. The negative premium rate of Grayscale Bitcoin Trust Fund (GBTC) is 10.15%; the premium rate of ETH Trust is 14.95%. In addition, the premium rate of ETC Trust is 33.52%, and the premium rate of LTC Trust is 38.39%.
The current negative premium rate of Grayscale GBTC is 10.15%
According to Coinglass data, the current Grayscale GBTC negative premium rate is 10.15%, ETH Trust negative premium rate is 14.95%, and ETC Trust negative premium rate is 33.52%. In addition, Grayscale BCH Trust has a premium rate of 62.15% and SOL Trust has a premium rate of 288.06%.
Grayscale’s new director: Investing in BTC since 2013
Odaily Planet Daily News reported that Grayscale officially stated in an interview that John Hoffman, the new Managing Director and Head of Distribution and Strategic Partnerships at Grayscale, has been investing in BTC since 2013, but "it took much longer to emotionally invest in its innovation." Hoffman also stated that in terms of time, the innovation trigger for blockchain has already passed 15 years, but when considering the adoption and impact of blockchain, it may currently only be at 1% of an exponential trend. Hoffman expects that digital assets will change the way people live, work, and entertain themselves in the next decade, and are now entering the "enlightenment slope," where the early promises of blockchain are increasingly being put into practice and demonstrating real-world utility.
The U.S. SEC met with 8 Bitcoin spot ETF applicants including Grayscale at the end of November
SEC stated that its trading and market division met with Bitwise, VanEck, Fidelity, and Invesco at the end of November regarding their respective proposals. The agency also met with 21Shares on behalf of Ark Invest's spot Bitcoin ETF proposal around the end of this month. The SEC does not appear to have met with WisdomTree, Valkyrie, or GlobalX regarding their respective spot Bitcoin ETF applications. Although the US Securities and Exchange Commission has disclosed several recent meetings, it has not publicly announced any plans to approve spot Bitcoin ETFs.
Grayscale: After GBTC becomes an ETF and is listed, it will release approximately US$1.89 billion in value
According to a blog post by Grayscale, in ETF form, GBTC's stock is expected to track Bitcoin's price more closely, which means any premium or discount in GBTC's stock price is expected to disappear. As of November 29, 2023, GBTC's assets under management were $23.4 billion, with a discount of 8.09%, or $1.89 billion. This means that assuming the current discount disappears, GBTC will release approximately $1.89 billion in value to investors through arbitrage mechanisms once it is listed on NYSE Arca and becomes an ETF.
Grayscale’s new managing director: Investing in BTC since 2013
Grayscale's new CEO and Head of Distribution and Strategic Partnerships, John Hoffman, has been investing in BTC since 2013, but "it took much longer to emotionally invest in its innovation." Hoffman also stated that in terms of time, the innovation trigger for blockchain has already passed 15 years, but when considering its adoption and impact, it may currently only be at 1% of its exponential trend. Hoffman expects that digital assets will change the way people live, work, and entertain themselves in the next decade, and that we are currently on the "enlightenment slope," with the early promises of blockchain increasingly being put into practice and demonstrating real-world utility.
Grayscale Investments Appoints John Hoffman as Managing Director and Head of Distribution and Partnerships to Advance Bitcoin ETF Initiative
John Hoffman, formerly of Invesco, has been appointed as the new Managing Director and Head of Distribution and Partnerships at Grayscale Investments. This appointment comes as Grayscale intensifies its efforts to launch a spot Bitcoin exchange-traded fund (ETF). Hoffman's extensive experience in the ETF space is expected to play a vital role in this initiative. Grayscale's move to hire Hoffman signifies its commitment to advancing its position in the competitive race to launch a spot Bitcoin ETF, which is part of a broader industry trend. The SEC's timeline for approving Bitcoin spot ETFs remains uncertain despite a favorable court ruling that mandated the SEC to review its applications.
Grayscale hires John Hoffman as managing director or prepares to launch spot Bitcoin ETF
According to a memo released this week, the US Securities and Exchange Commission (SEC) is in official contact with asset management companies before making a decision on whether to approve a Bitcoin ETF. The regulatory agency stated in a memo that it met with Grayscale on Thursday to discuss the potential conversion of its Bitcoin Trust fund into an ETF. SEC officials also met with representatives from BlackRock and Nasdaq. While the SEC may still decide to block crypto ETFs, many industry experts expect such funds to launch in the US early next year. In recent months, the regulatory agency has delayed decisions on several Bitcoin funds and may choose to approve or reject all applications around the same time.
