Grayscale Expands Its ETF Team
Last June, after the SEC rejected Grayscale’s bid to transform its Bitcoin Trust into an Exchange Traded Fund (ETF), Grayscale filed a lawsuit against the regulatory body. Now, as a significant decision in the lawsuit nears, Grayscale has announced plans to expand its ETF team, signalling a potential strategic move. “Our ETF team is hiring,” the firm shared on Twitter, capturing attention with an eyes emoji.
Job Postings Garnering Interest
Recently, Grayscale has posted two new positions—a product specialist and senior associate—to bolster its ETF team. According to LinkedIn, these listings have received over 50 applications within a week. The senior associate is expected to “contribute to investment product development ideas and work with the ETF team towards their realization,” while the product specialist will “optimize the investor experience” with a focus on ETFs, working closely with various Grayscale teams including sales and marketing.
Awaiting A Pivotal Decision
Bloomberg Analyst, James Seyffart, recently hinted that the court’s decision on Grayscale’s lawsuit against the SEC could be delivered as soon as this week. The outcome of this case could force the SEC to reconsider its stance on Bitcoin ETFs, especially if the court finds the SEC’s grounds for denial insufficient.
The Contrast: GBTC vs. Spot Bitcoin ETF
Grayscale’s Bitcoin Trust (GBTC) offers investors Bitcoin exposure without direct asset holding. Unlike a spot Bitcoin ETF—which could simplify and lower costs for institutions buying and selling Bitcoin—GBTC lacks a redemption mechanism affecting its price tracking capabilities and incurs higher fees. A spot ETF conversion could lower these fees and address GBTC’s trading discount relative to its $18 billion in held Bitcoin.
The SEC’s Reluctance and Industry Responses
Since 2013, the SEC has repeatedly cited market manipulation concerns in its denial of spot Bitcoin ETF applications. Nonetheless, anticipation for such ETFs remains high, especially following an application from global asset giant BlackRock. Fidelity and ARK Investment Management have also submitted applications. Last week, the SEC postponed its decision regarding ARK’s application, citing the need for additional time.
What the Future Might Hold
ARK CEO, Cathie Wood, recently expressed her belief that, should the SEC ever give its approval, it is likely to greenlight multiple Bitcoin ETF applications simultaneously—a sentiment Grayscale echoes
