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NEW YORK – Grayscale, a leading digital currency asset manager, has successfully converted its Bitcoin Trust (GBTC) into an exchange-traded fund (ETF), now recognized as the largest Bitcoin ETF by assets under management. This step was taken following the approval by the United States Securities and Exchange Commission (SEC) on January 10, 2024, to allow GBTC to directly track the price of bitcoin.
The approval came after a federal court ruling in August forced the SEC to re-evaluate Grayscale’s proposal for the conversion. Since this decision, Grayscale has worked to align GBTC’s structure with that of an ETF, which aims to more accurately reflect the market price of bitcoin.
The new ETF maintains a closed structure and charges investors an annual fee of 2.0%. This fee structure and the conversion of the trust to an ETF are significant developments for institutional investors seeking indirect exposure to bitcoin.
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