Article: The U.S. Securities and Exchange Commission (SEC) has announced the start of negotiations with Grayscale regarding the spot offer of Bitcoin ETFs
Context:
The U.S. Securities and Exchange Commission (SEC) has begun negotiations with Grayscale Investments on the details of the company's application to convert GBTC from a bitcoin trust into a spot bitcoin ETF, reports CoinDesk edition with reference to its sources.
What is meant - in simple words
There is such a company in the United States, Grayscale, the largest investment fund engaged in the sale of digital assets (in the form of its securities, which are backed by cryptocurrency) to accredited investors in the United States.
Since relatively recently, this company has created its flagship investment product called Grayscale Bitcoin Trust (GBTC), which aims to attract investors from the US stock market (namely those accredited in America) to this type of asset due to its popularity.
The company's financial instruments are backed by cryptocurrency and actually make up their value in digital assets.
In fact, this investment instrument is represented by various most liquid types of crypto assets, which is an analogue of the same a spot bitcoin ETF, but not giving the same trading opportunity as the latter.
The company's investment instruments are currently listed only on the over-the-counter OTCQX exchange and only for accredited participants.
The spot bitcoin ETF opens up the possibility of trading on the stock market and access to the crypt for all investors, both nationally and internationally.
That's why Grayscale has started negotiations with the U.S. Securities and Exchange Commission (SEC) to launch its new investment product on the stock market in the form of a spot bitcoin ETF, which will open up good opportunities for it to expand its sphere of influence in the world of finance.
In other words, listing on the stock exchange of such an instrument as the bitcoin ETF will allow investors to expand their portfolios at the expense of cryptocurrencies.
In this case, investors will not need to buy crypto directly, but simply shares of bitcoin ETF funds that already have these assets embedded in them.
