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Grayscale hints at plans to convert Bitcoin trust into BTC-settled ETF

October 18, 2021No Comments


Institutional investment giant Grayscale is reportedly considering converting its Bitcoin Trust into a physically settled exchange-traded fund (ETF).

On October 17, Barry Silbert, CEO of Digital Currency Group, Grayscale's parent company, hinted that Grayscale is making plans to convert its Bitcoin Trust into a spot-settled Bitcoin fund.

Having taken to Twitter to criticize the cash-settled Bitcoin futures ETF recently approved By the U.S. Securities and Exchange Commission (SEC), Bitcoin commentator Preston Pysh chimed in to ask Silbert when Grayscale's Bitcoin Trust would become a BTC-settled ETF. "Stay tuned," Silbert replied.

However, investors in the Grayscale Bitcoin Trust appear to have been unsettled by Silbert's comments, with Twitter user "svrgnindividual". interrogation which would mean a restructuring for investors with shares in Grayscale's Bitcoin Trust.

โ€œWhat happens to us grayscale investors once the spot ETF is approved? Does our investment convert to ETF shares? they tweeted.

Rumors of Grayscale's alleged ambitions for a Bitcoin ETF began circulating late in the week after a CNBC. report Citing anonymous insider information he claimed that Grayscale was waiting for the Securities and Exchange Commission to finally approve a Bitcoin ETF.

On October 15, the SEC announced that it had accepted the ProShares Trust futures-based Bitcoin securities registry (BTC) Investment fund. The ProShares ETF offers investors exposure to contracts that speculate on the future price of BTC that are settled in cash.

Related: Grayscale Bitcoin Trust FUD has ended as latest GBTC unlock totals just 58 BTC

Despite ETF approval being cited as Bitcoin's main catalyst recent bull market actionMany analysts have criticized the fund for its cash-settled structure, instead advocating that the SEC approve a Bitcoin ETF backed and settled in BTC.

Based on the latest Grayscale entries upgrade As of October 15, the firm has $ 52.6 billion in assets under management (AUM), 73% of which is held in Bitcoin Trust. The data suggests that the grayscale Bitcoin stash comprises roughly 620,000 BTC or 3.3% of the total Bitcoin supply.