According to reports, institutional investment giant Grayscale is considering converting its Bitcoin trust into a physically settled exchange-traded fund (ETF).
On October 17, Barry Silbert, CEO of Grayscale’s parent company, Digital Currency Group, hinted that Grayscale is planning to convert its Bitcoin trust into a spot-settled Bitcoin fund.
After criticizing the cash-settled Bitcoin futures ETF on Twitter Recently approved With the support of the US Securities and Exchange Commission (SEC), Bitcoin commentator Preston Pysh interjected to ask Silbert when he would convert Grayscale’s Bitcoin trust into an ETF settled in BTC. “Please stay tuned,” Silbert responded.
— Barry Silbert (@BarrySilbert) October 17, 2021
However, investors in Grayscale Bitcoin Trust seem to be disturbed by Silbert’s remarks, Twitter user “svrgnindividual” question What the reorganization means to investors who hold shares in Grayscale Bitcoin Trust.
“Once the spot ETF is approved, what will happen to us grayscale investors? Will our investment be converted to ETF shares?” they tweeted.
After CNBC, rumors about Grayscale’s Bitcoin ETF ambitions began to circulate later this week report Quoting anonymous insiders, Grayscale is waiting for the final approval of the Bitcoin ETF by the US Securities and Exchange Commission.
On October 15, the US Securities and Exchange Commission announced that it had accepted Futures-based Bitcoin from ProShares Trust (Bitcoin) Exchange-traded funds. ProShares’ ETF provides investors with exposure to contracts that speculate on the future price of BTC settled in cash.
Although the approval of the ETF is considered to be the main catalyst for the rise in the price of Bitcoin Recent bullish market actionMany analysts criticized the cash settlement structure of the fund, but advocated that the US Securities and Exchange Commission approve the Bitcoin ETF backed by BTC and settled in BTC.
According to Gray’s latest position renew On October 15, the company had $52.6 billion in assets under management (AUM)-73% of which was held by Bitcoin Trust. The data shows that Grayscale’s Bitcoin reserves account for approximately 620,000 BTC, which accounts for 3.3% of the total Bitcoin supply.