Gary Skill is applying for a Bitcoin ETF license
Grayscale, one of Bitcoin’s largest investors, plans to submit its bid for the Bitcoin Exchange Trading Fund (ETF) to the US Stock Exchange Commission in a few days. The company apparently wants to turn its Bitcoin investment fund into an instant ETF. In instant ETFs, the fund shares are directly supported by real bitcoins, and if Gary Skill can get the approval of the stock exchange commission, he will be the first supplier of this form of funds traded on the bitcoin exchange.
to the Report News Betsy, the investment company Scale, best known for its Bitcoin Mutual Fund, plans to submit its request for a Bitcoin ETF to the US Securities and Exchange Commission in the next few days. The company is reportedly set to convert its Bitcoin investment fund, called GBTC, into an instant Bitcoin ETF. Gary Skill, one of the largest companies in the field of digital currencies, intends to change the approach of its funds as the investment environment in digital currencies becomes more competitive.
The US Securities and Exchange Commission last week approved the release of the first bitcoin futures ETF, and the fund is scheduled to be listed on the New York Stock Exchange today. Many see the move as a turning point in the digital currency, as Bitcoin is finally strengthening its legitimacy as an asset class for Wall Street and ordinary investors.
ProShares’s future ETF capital management fee, which has recently received approval from the Stock Exchange Commission, is 0.95% and almost half of Gary Skill’s 2% fee. Another advantage of future ETFs is the absence of redemption periods; An issue that Bitcoin Gray Fund investors have been dealing with from the beginning.
Why can Scale fundraising be better than future ETFs?
The launch of Bitcoin futures ETFs on the US stock market is a step towards increasing the level of access of ordinary investors to this digital currency. However, many digital currency market investors believe that the futures of futures contracts based on futures, such as the Bitcoin futures market on the Chicago Mercantile Exchange (CME), are much less productive than current ETFs that are backed by real bitcoins.
Due to the Contango phenomenon, or the fact that the futures market is higher than the current market, investors will lose their potential profits if bitcoin futures contracts expire above the current price.
Joe Orsini, director of research and development at Eagle Brook Advisors, recently tweeted about the disadvantages of bitcoin futures ETFs, saying that futures-based ETFs are more for day-to-day transactions than investments. long time.
GrayScale ETFs, if they can obtain a license from the Exchange Commission, are backed by the actual bitcoins purchased by the company and will not be involved in price-dependent derivatives trading like future ETFs. Gary Skill now owns a significant portion of Bitcoin’s turnover.
Barry Silberts, founder of Digital Currency Group, as well as GarySkill, tweeted about changes to the GarySkill bitcoin investment fund and joked, “If you loved someone. “You will not let him buy and hold future ETF stocks,” and perhaps there is a truth behind this founding joke.