The SEC observed that Grayscale filled out form 19b-4. According to ETF Rumor, it is only a matter of time before the future hearing begins.

As reported by the Notice of Filing, within 45 days after publication of the form filed by Grayscale in the Federal Register, the council will either accept or refuse the rule change. If the board cannot settle on a decision, it will continue to debate whether or not the rule change should be rejected.

The conversion of the GBTC fund was declared not long after the approval of the first US futures-backed Bitcoin ETF by ProShares. This brought over $1 billion to the crypto market.

The report about the possible conversion of Grayscale’s Bitcoin fund was not well received. Individuals and previous Grayscale customers have expressed on social media resentment that the fund is trading at a negative premium.

Since direct BTC exposure is a more convenient option for retail traders, Grayscale’s fund (~20% premium) is losing its basis for existence. This is because investors can use ProShares products to achieve the same exposure with lower premiums and rollout expenses.

With the conversion to ETF, investors may be more interested in Grayscale’s product, further funding the crypto market. The day of the hearing remains unconfirmed and could still be delayed, postponed, or moved to another day.

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