Grayscale Investments has decided to file form 19b-4 with the Securities & Exchange Commission which provides for amending the nature of a fund. Since SEC has granted permission to the countries first Bitcoin based Exchange Traded (ETF) fund to Proshares, more and more firms are seeking to provide for a Bitcoin ETF-fund. For this purpose, Grayscale will be filing necessary documents before the SEC for changing the nature of its already existing Bitcoin Fund into an ETF-fund.

Grayscale Investment has no comparison when it comes to managing the assets, particularly the digital assets. It is by far the biggest crypto asset management firm in the US as well as in the world. There are more than 13 crypto funds in which the investors can invest their monies. However, the biggest crypto fund of Grayscale is the one comprising Bitcoins. The second biggest crypto fund of Grayscale contains Ethereum.

However, Grayscale Investment had a long desire wherein it wanted to launch a Bitcoin fund with the nature of ETF. But never applied for that because the permission granted authority i.e. SEC was holding approvals of many ETF-funds applications. Even in the neighboring states, Bitcoin based ETF-funds existed but there was none in the US. For this, SEC was even criticized a lot for not taking any decisions on the pending applications.

It was only two to three weeks ago, when there was a rumor that SEC may opt to grant permission for ETF-fund. When SEC was asked about the issue, it said that it was considering the applications and decision will be taken soon. But even in the absence of decision, people started to talk about ETF-fund. An impression was created as if SEC was going to grant the approval.

The news however acted positively in favor of Bitcoin whose price started to increase along with the Bitcoin ETF expectation. Finally, SEC has taken a decision and eventually granted permission for the establishment of Bitcoin based ETF-fund. The first company to earn the title of being the first Bitcoin ETF-fund provider has gone to Proshares. Soon thereafter there was yet a second permission and this time it was earned by an asset management company called “Vaneck”.

Evidently, SEC has opened a window of opportunity and more and more applicants are coming in seeking permissions for Bitcoin ETF-funds. One such applicant is Grayscale Investments i.e. the biggest crypto asset manager of the world. Though Grayscale already has a Bitcoin fund but now it wants to change the nature of its Bitcoin fund. In this pursuit, Grayscale has been submitting a document called form 19b-4. Through this form, Grayscale will be able to amend the nature of its Bitcoin fund into an ETF fund. It would be however at the sole discretion of SEC whether or not to grant such permission.


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