Grayscale’s ETF Quest: Q3 Decision Looms

Grayscale CEO Michael Sonnenshein announced during CoinDesk’s Consensus 2023 conference on Wednesday that the company is anticipating a decision by the end of the third quarter regarding the approval to convert its $2.7 billion Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund (ETF). The Securities and Exchange Commission (SEC) had previously rejected the asset manager’s request for such a conversion.

The GBTC currently suffers from a well-known discount, with its market value being significantly lower than the actual worth of the bitcoin it holds. Converting it into an ETF could address this issue. Grayscale, a subsidiary of Digital Currency Group like CoinDesk, filed a lawsuit against the SEC following the rejection of their request.

Sonnenshein stated that he expects a verdict in the lawsuit by the end of September, and the company is eagerly awaiting the outcome. The SEC has justified its decision by claiming that it has consistently denied all spot bitcoin ETF applications it has received, in line with its rejection of Grayscale’s proposal.

While Sonnenshein did not comment on whether he believes the ruling will be in Grayscale’s favor, he expressed his intention to “work expeditiously” with the SEC if the decision is positive. In that case, the company plans to facilitate the conversion and list the product on the NYSE Arca exchange.