(Bloomberg) -- Grayscale Investment LLC has recruited a couple of heavyweight partners to help with a bid to convert its Bitcoin trust into an exchange-traded fund.
The firm has filed with the US Securities and Exchange Commission for its Grayscale Bitcoin Trust, ticker GBTC, to become an ETF. The trust, which has a market cap of about $13.6 billion and a premium of negative 32% to the price of Bitcoin, has enlisted Jane Street and Virtu as authorized participants if it does become an ETF. APs are specialized traders that have the right to create and redeem shares of an ETF, which is done to help keep the price close to its net asset value.
“This announcement from Virtu and Jane Street should really be digested as validation that the market has matured to the place where you have institutional players standing ready to support such an ETF,” said Michael Sonnenshein, chief executive of Grayscale Investment.
A decision by the SEC on the Grayscale application if expected in early July.
GBTC has been in the spotlight recently because of its connection to hedge fund Three Arrows Capital, which has been the subject of heavy speculation about its financial health amid a broader crypto downturn and the Terra/Luna ecosystem meltdown. Sonnenshein said recently that he hasn’t been in touch with Three Arrows, which owned more than 5% of GBTC as of a filing for December 2020.
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