Grayscale, a major institutional investor, is allegedly considering making its Bitcoin Trust a physically settled exchange-traded fund (ETF), this development comes after the SEC approved a Bitcoin futures ETF.
Grayscale’s parent business Digital Currency Group’s CEO, Barry Silbert, revealed on Oct. 17 that Grayscale is planning to convert its Bitcoin Trust into a spot-settled Bitcoin fund.
After criticizing the SEC’s recent approval of a cash-settled Bitcoin futures ETF, Bitcoin commentator Preston Pysh stepped in to ask Silbert when Grayscale’s Bitcoin Trust would be turned into a BTC-settled ETF. Silbert said, “Stay tuned.”
Grayscale Bitcoin Trust investors, on the other hand, appear to be uneasy about Silbert’s comments, with Twitter user “svrgnindividual” asking what a reorganization would entail for Grayscale Bitcoin Trust shareholders.
“After the spot ETF is approved, what happens to us Grayscale investors?” “Has our investment been converted into ETF shares?” they inquired via Twitter.
After a CNBC article quoting unidentified insiders said that Grayscale was waiting for the Securities and Exchange Commission to eventually authorize a Bitcoin ETF, rumors regarding Grayscale’s purported plans for a Bitcoin ETF began spreading late last week.
The Securities and Exchange Commission (SEC) stated on Oct. 15 that it has accepted the registration of securities from ProShares Trust’s Bitcoin (BTC) exchange-traded fund, which is based on futures. ProShares’ ETF gives investors exposure to cash-settled contracts that speculate on the future price of bitcoin.
Despite the fact that the ETF’s approval has been credited as the key impetus for Bitcoin’s recent strong market activity, several analysts have criticized the fund for its cash-settled structure, urging the SEC to approve a Bitcoin ETF that is backed by and settled in BTC instead.
According to Grayscale’s most recent holdings update on Oct. 15, the firm has $52.6 billion in assets under management (AUM), with the Bitcoin Trust accounting for 73% of it.
Grayscale’s Bitcoin stockpile is estimated to be around 620,000 BTC, or 3.3 percent of Bitcoin’s total supply, according to the statistics.
