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Dusk has fallen on the Bitcoin Trust

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Illustrated by Sarah Grillo/Axios

Grayscale Bitcoin Trust (GBTC) traded Thursday at a record 42% discount to the underlying value of the Bitcoin it holds.

Important reasons: Many savings and investment platforms offer grayscale crypto funds to clients who request exposure to digital assets. As the largest US investment fund offering exposure to Bitcoin, it seems like a natural choice.

  • One of those platforms, Stash, offers GBTC on its platform. Robo advice “Smart Portfolio”.
  • When Axios asks Stash He declined to directly answer whether users were aware of the risk of further discounts before investing. A spokesperson later said investors were given general information about the higher expense ratio than most ETFs.

big picture: Expect Regulatory Approval spot bitcoin ETF.

  • The ETF will remain priced in line with its net asset value (reflecting the real price of Bitcoin) and Grayscale plans to convert GBTC into an ETF if permitted.

State of play: The FTX.com bankruptcy was another setback for the cryptocurrency industry. And one of the most tangible impacts could be a spot on the Bitcoin ETF.

What they say: Steven McClurg, CIO of crypto ETF provider Valkyrie Investments, told Axios after his Bitcoin spot ETF was rejected:

  • The SEC has clarified that an SEC-regulated exchange for Bitcoin must exist first, which could take time. ”

Catch up soon: grayscale Legal battle with SEC over physical Bitcoin ETF application rejection motion One after a recent denial earlier this year.

  • lawsuit claim Referring to the SEC’s approval of Bitcoin futures ETFs, the SEC said it “has failed to apply consistent treatment to similar investment vehicles.”
  • The company supporter Last month on Coinbase Global, the largest cryptocurrency exchange in the United States.

Flashback: recall SEC was denied Tyler and Cameron Winklevoss filed the first Bitcoin ETF application in March 2017, citing concerns about fraud and market manipulation inconsistent with domestic stock exchange rules.

zoom in: Crypto customers are our number one priority, especially after FTX’s impact has grown.

  • Grayscale also claims the lack of a spot Bitcoin ETF hurts curiosity about cryptocurrencies, according to a lawsuit against the SEC.
  • The SEC believes it is doing its part by keeping these ETFs out of reach.
  • Stash CEO Brandon Krieg says he is not “promoting cryptocurrencies” and the industry needs regulators.

To the point: No one knows if the Bitcoin ETF was approved, but it’s easy to imagine people blaming the mess if it wasn’t.

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