Grayscale Gives Bitcoin ETF Team A Boost

Grayscale Gives Bitcoin ETF Team A Boost

On Thursday, Grayscale Investments revealed that it was expanding its ETF team, as there could soon be a decision reached in the widely anticipated lawsuit against the US Securities and Exchange Commission (SEC).

The company made the hiring announcement on Twitter and LinkedIn showing that the company has posted two job openings in the past week.

The positions

Grayscale is looking for a senior associate and a product specialist to add to its ETF team. The recently posted positions have managed to get more than 50 applications combined.

The job description for the position of senior associate explains that they would work with the ETF in developing and realizing product development ideas.

As for the job description for the position of product specialist, it says that they would be required to work closely with the marketing, sales, product, and operations team for providing a better investor experience, with ETFs being the main focus.

Last June, Grayscale filed a lawsuit against the US securities regulator, after the SEC had turned down its application of converting its GBTC (Grayscale Bitcoin Trust) into a spot Bitcoin ETF.

The lawsuit

On Monday, James Seyffart, an analyst for Bloomberg, said that there could be a ruling in the said lawsuit as early as this week.

Investors can currently use GBTC for investing and gaining exposure to Bitcoin, but they do not directly hold the asset.

As it does not have a redemption mechanism, it charges higher fees and is not able to track the price of Bitcoin.

In comparison, a spot Bitcoin ETF would make it easy and cheap for institutions to buy and sell the leading cryptocurrency.

According to most people, there is a slim to no chance that America’s financial watchdog will give its approval for a spot Bitcoin ETF.

The latest individual to say saw was the former head of the Office of Internet Enforcement at the SEC, John Reed.

The complications

However, it is possible that the agency may not be left with a choice after the decision in its lawsuit with Grayscale.

Every time the SEC has denied a Bitcoin ETF application since 2013, it has cited market manipulation as the primary reason.

If the ruling in the lawsuit is in favor of Grayscale, then the SEC would have to change its tune because it would mean that the agency has insufficient grounds for denial.

Grayscale would then be able to charge lower fees from its clients if it is able to convert its GBTC into a spot bitcoin ETF.

It would also resolve the issue of ‘discount’ due to which shares of GBTC are sold at a lower value as compared to the value of Bitcoin held.

The discount is due to the existing structure of the fund that does not allow the shares to be redeemed in the market.

Crypto circles have been an increase in anticipation for a spot in Bitcoin ETF ever since the world’s largest asset manager, BlackRock, also submitted an application for one to the SEC.