Grayscale Investments is pushing ahead with plans to transform itself into a major ETF player even as its potential flagship fund remains blocked by regulators. The crypto-focused asset manager on Tuesday formed Grayscale Fund Trust to manage some listed products, including ETFs, under its own roof as part of the rules of the Investment Company Act of 1940. announced. Grayscale has also applied for the creation of three new his ETFs under the Trust’s banner. “The formation of the Grayscale Fund Trust is another important milestone as the company continues to bring products to market,” Michael Sonnenschein, CEO of Grayscale, told CNBC. The expansion is one of the very important building blocks required for the expansion of Grayscale over the company’s attempt to convert the $17 billion Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF. It comes as it is embroiled in a lawsuit with the Commission, which has repeatedly refused to approve a spot bitcoin product, citing concerns about manipulation of the underlying crypto market. Alleging that the product should be allowed to launch because a coin futures ETF is already on the market, the lawsuit alleges that GBTC has been trading at deep discounts for months. This is important to Grayscale’s future as it puts pressure on the company to allow redemption, and if the trust is converted to an ETF, the discount could end without significant withdrawals from the fund. The lawsuit was heard in the DC Court of Appeals for the Circuit in March and is expected to be ruled later this year.Sonenshain said the move to ETFs is part of Grayscale’s broader corporate plans, but the lawsuit is expected to continue. and the creation of a new ETF trust is a “separate and separate” matter. One of the new ETFs Grayscale filed on Tuesday could be seen as an alternative to the Spot Bitcoin Fund. and invests in shares of bitcoin mining companies as well as spot bitcoin products outside the United States. Other promising funds are the Grayscale Ethereum Futures ETF (ETHG) and the Grayscale Privacy ETF (PRVC). The initial filing does not yet state the fund’s expense ratio. New ETF registrations are generally not valid until at least 75 days after the initial application, and some funds may not be launched. Grayscale already has one of his ETFs in the US market through US Bank’s Series Trust. Grayscale Future of Finance (GFOF) launched last year with only about $5 million in assets under management. Sonnenshein said having Grayscale have its own trust gives it more autonomy than working with a third party. After the cryptocurrency crash in 2022, the price of Bitcoin and other digital currencies will recover in 2023. Bitcoin traded near $27,500 on Tuesday, up more than 60% for the year, but still down about $40,000 from its all-time high. .
