USA investors will not after all gain access to an exchange-traded Bitcoin fund, which would make cryptocurrency investment akin to buying stocks.
Grayscale intends to continue its dialogue with the SEC and to closely monitor regulatory developments in order to be prepared to proceed with an exchange listing for the Bitcoin Investment Trust when conditions permit, although Grayscale can not predict when this will be.
Grayscale said it will continue its dialogue with the SEC and will closely monitor regulatory developments in order to be prepared to go forward with an exchange listing, although it "cannot predict when this will be".
The Bitcoin Investment Trust is now traded "over the counter" in less formal exchanges than those used for typical stocks and at far higher prices than the bitcoin it holds.
GBTC shares gained almost 500 percent this year, more even than the 332 percent rise of bitcoin BTC=BTSP to more than $4,100.
The currency's meteoric rise prompted JPMorgan Chase & Co (JPM.N) CEO Jamie Dimon this month to call bitcoin "a fraud" that will blow up.
Bitcoin is a virtual currency that can be used to move money around the world quickly and with relative anonymity, without the need for a central authority, such as a bank or government.
According to Grayscale's investigation of regulatory developments in cryptocurrency markets, it is lacking in regulatory progress, so the approval of the application for Bitcoin Investment Trust seems impossible now. The SEC declined to comment. NYSE could not be reached. CBOE Holdings Inc's (CBOE.O) Bats exchange, which wanted to host that exchange-traded fund, appealed the ruling.
A proposal to list a product based on ether, another digital currency, was pulled earlier this month.
Bitcoin-tracking products already trade in Europe and one is being considered in Canada.
Grayscale Investments, LLC, a digital currency investing firm and official sponsor of the Bitcoin Investment Trust, announced yesterday that NYSE Arca exchange has withdrawn a request with the U.S. Securities and Exchange Commission (SEC) to list shares of the Bitcoin Investment Trust.