What is GBTC (GBTC)?

GBTC is an investment trust that owns over 3.4% of all Bitcoin currently in circulation. As of February 2022, each share of GBTC was backed by 0.00092896 actual Bitcoin. GBTC shares do not own anything other than Bitcoin, nor do the shares employ leverage or the use of derivatives such as Bitcoin Futures contracts.

Should grayscale’s GBTC be made an ETF?

The watchdog is concerned investors would lack sufficient protections under the Grayscale proposal. Grayscale filed to make its Bitcoin Trust, known as GBTC, an ETF back in October 2021, but the ruling faced multiple delays.

What is the Bitcoin Investment Trust (GBTC)?

Because the Bitcoin Investment Trust is currently the only fund of its kind specifically for bitcoin, investors have been paying a high premium. In Sept. 2018, shares of GBTC traded at a high of $7.95, which was around 20% higher than the value of the bitcoin within the trust that each share represented at that time.

Is the SEC's position on bitcoin-based ETFs inconsistent?

Grayscale argues the SEC’s position is inconsistent in light of previous decisions to greenlight other bitcoin-based ETFs, including those based on futures markets and one that allows investors to short — or bet against — the cryptocurrency.