Apr. 25, 2022
Dear Sir or Madam, I and my family are GBTC shareholders, and we support the conversion of Grayscale Bitcoin Trust (OTCQX: GBTC) to a spot ETF. Last October, you approved futures-backed Bitcoin ETFs, but continue to reject applications for spot Bitcoin ETFs. Given that investors use both vehicles to gain exposure to the same underlying asset, Bitcoin—from which both vehicles derive their prices—we, as investors, should be able to choose if we’d like direct or futures-based exposure to that asset. Our primary interest in this conversion is derived from our holdings of GBTC in various IRAs and trusts. Having a spot ETF that more closely tracks the value of Bitcoin, rather than trading at a discount or premium, is essential for our financial and estate planning. Furthermore, the discount to NAV in GBTC has been around 25%, on average, this year. This means that the price of GBTC is less than the price of Bitcoin, the asset itself. Given that GBTC has about $30bn in AUM, shareholders like me are experiencing a destruction of value of around $7.5 billion. I reside in Georgia, and appreciate the opportunity to express my view. I hope that you will approve this conversion and protect the interest of investors. Sincerely, R. Hanson