New ETF Invests in Grayscale Bitcoin Trust


What You Need to Know

  • The SEC has not prohibited the closed-end funds invested in Bitcoin (like Grayscale), lawyer Nicolas Morgan said.
  • SPBC is providing a liquid, scalable way to add Bitcoin exposure to a portfolio, said CEO Kim.
  • SEC will be conducting thorough exams of funds that invest in Bitcoin futures.

Simplify Asset Management Inc. announced Tuesday the launch of the Simplify U.S. Equity PLUS GBTC ETF.

The fund, filed with the Securities and Exchange Commission on May 23, will invest at least 80% of its net assets in U.S. equity securities, and expects to invest up to 15% of net assets in Bitcoin via the Grayscale Bitcoin Trust.

“Cryptocurrency markets now exceed $2 trillion in value and account for more than 1% of the overall global market portfolio,” Paul Kim, Simplify’s CEO, said Tuesday in a statement.

“In addition, recent research has shown how uncorrelated crypto assets are to equity and fixed income markets, making them a possibly compelling part of a well-diversified portfolio. But allocating to crypto assets is difficult since over-the-counter offerings can present a host of challenges for investors and advisors, managing direct crypto exposure can be incredibly time consuming and onerous, and there remains no ETF on the market providing direct exposure to crypto itself,” Kim said.

Simplify is “very pleased to be launching SPBC, as a means of solving these challenges, providing a liquid, scalable way to add Bitcoin exposure to a portfolio,” Kim added.

Nicolas Morgan, a partner at global defense firm Paul Hastings, told ThinkAdvisor Tuesday in an email that the Grayscale Bitcoin Trust “is a closed-end fund that invests in Bitcoin (rather than an ETF that invests directly in Bitcoin).”



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