Grayscale's Milestone: Launching the Inaugural Spot Bitcoin ETF for Trading

The Securities and Exchange Commission (SEC) gave its nod on Wednesday to Grayscale's endeavor to convert its substantial $27 billion bitcoin trust into an Exchange-Traded Fund (ETF). Grayscale, the entity managing the Grayscale Bitcoin Trust (GBTC), proudly asserts its pioneering status among the newly sanctioned collection of spot bitcoin ETFs allowed to commence trading. This affirmation was communicated by a spokesperson for the company on Thursday.

Jennifer Rosenthal, Grayscale's Head of Communications, shared the news via email, stating, 

"I am pleased to confirm that GBTC commenced pre-trading at 4 am EST this morning."

The SEC's endorsement of Grayscale's conversion is a noteworthy accomplishment for the cryptocurrency industry, signifying the inaugural approval of numerous applicants by the U.S. markets regulator.

During pre-market hours on the NYSE Arca, GBTC was actively traded at $40.496. Notably, GBTC carries a relatively higher fee compared to its counterparts, imposing a 1.5% charge on investors, while others in the market range from 0.2% to 0.9%. Grayscale strategically leverages its early advantage, with a robust $27 billion in assets, positioning itself competitively in the market.

In tandem with Grayscale's achievement, BlackRock's iShares Bitcoin Trust (IBIT), another ETF granted approval on the same Wednesday, is also available for pre-market trading. IBIT demonstrated a significant uptick of more than 25%, reaching $27.54 at the time of this report. The simultaneous market presence of these approved ETFs adds to the evolving landscape of cryptocurrency investments, drawing attention to the growing diversification and accessibility within the digital asset market.

Read More: Bitcoin Traders Adjust Stance Amid Impending Spot ETF Deadline