Grayscale Lines Up Jane Street and Virtu as 'Authorized Participants' if GBTC Converts to ETF
The owner of the $13.5 billion Grayscale Bitcoin Trust awaits an imminent decision from the SEC on its spot Bitcoin ETF proposal.
Grayscale Investments said Monday it would work with market-making heavyweights Jane Street and Virtu Financial as authorized participants should its Grayscale Bitcoin Trust (GBTC) garner Securities and Exchange Commission approval to be converted into an ETF.
"Authorized participants" are specialized traders that can create and redeem shares of an ETF.
A decision on Grayscale's ETF application is due on or before July 6, and the heavy betting is that the SEC will deny the proposal. Nevertheless, CEO Michael Sonnenshein this morning reiterated his company's "unequivocal" commitment to converting GBTC from a trust to a spot ETF.
Additionally, Grayscale earlier this month hired high-powered attorney and former Obama administration official Donald B. Verrilli to assist in those efforts, and has made little secret of its intent to take the SEC to court should the agency deny the ETF application.
GBTC currently trades at nearly a 30% discount to net asset value – an amount that would be quickly erased were the trust to become an ETF.
Bloomberg first reported the authorized-participants news, with Grayscale's VP of communications, Jennifer Rosenthal confirming the details to CoinDesk.
Virtu Financial earlier this month said it sees a market-making opportunity in crypto as demand for the asset class grows. It's working with Citadel Securities on creating a crypto marketplace.
Grayscale’s parent company is the Digital Currency Group, which also owns CoinDesk as an independent subsidiary.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.