Grayscale enters the highly competitive European crypto fund market and is discussing expansion plans with local partners

Grayscale Investments, which operates a Bitcoin trust fund worth about $30 billion, is preparing to expand into Europe, according to Bloomberg.

Grayscale Chief Executive Michael Sonnenshein said in an interview in London on Tuesday that the company is meeting with local partners to discuss expansion plans, but has not yet decided on which exchanges or countries it will offer its products, or which products to launch first. Grayscale plans to conduct a series of pilot tests in different markets.

The European crypto fund market has become more competitive in recent months as companies such as 21Shares have launched exchange-traded products (ETPs) in Switzerland, Germany and elsewhere. As of March, Europe has approved 73 crypto ETPs with a total of $7 billion in assets under management.

“Despite the unity of the European Union, we do not view the entire European market as actually one market,” Sonnenshein said. “Rather, we will be very thoughtful about the financial centers where our products are located, as we recognize the differences in investor behavior and attitudes, as well as regulatory regimes.”

The expansion comes as the U.S. Securities and Exchange Commission’s deadline for Grayscale to convert the Grayscale Bitcoin Trust (ticker GBTC) into a physically-backed exchange-traded fund approaches. While ETFs tied to the spot price of cryptocurrencies like bitcoin and ethereum have been traded in Europe for at least five years, the U.S. has yet to approve such instruments.

U.S. approval of a spot Bitcoin ETF could accelerate inflows into the crypto fund industry, with global assets set to double to $120 billion by 2028, according to a March analysis by Bloomberg Intelligence.

U.S. market regulators have approved four bitcoin futures ETFs, but none of them invest directly in the cryptocurrency.

However, Sonnenshin remains optimistic, recently stating that it is “a matter of when, not if” that the SEC approves a Bitcoin spot ETF.

With the U.S. SEC recently approving Teucrium’s Bitcoin ETF application, lawyers at crypto asset manager Grayscale are stepping up the pressure on the regulator by sending a letter to the SEC stating that its Bitcoin spot ETF is no different from the Teucrium Bitcoin futures ETF approved earlier this month.

Currently, SEC Chairman Gensler has been delaying the approval of a spot ETF because he believes that the Bitcoin market is ripe for manipulation and abuse. Meanwhile, Grayscale CEO Michael Sonnenshein said that legal action against the SEC is likely if their application is rejected.