June 17, 2021
I believe that the approval of a Bitcoin ETF will be beneficial to US investors.
Because Grayscale's Bitcoin Trust already allows retail investors to obtain exposure to Bitcoin, the lack of an ETF approval does not effectively prevent anyone from being exposed to a volatile asset.
It does, however, prevent the average retail investor from being able to access such an investment through a suitably liquid vehicle that does not require technological expertise for a reasonable fee. The 2% that Grayscale can charge for the privilege of being the \"only game in town\" is exorbitant, and the discount to NAV is proof of this now that institutions can simply buy the Canadian ETFs, leaving US retail investors holding the bag.
Approving an ETF in the US will correct this imbalance quickly and give relief to US-based investors who are stuck with an asset that is trading at a discount to NAV.