Institutional investment giant Grayscale is reportedly considering converting its Bitcoin Trust into a physically settled exchange-traded fund (ETF). The CEO of Grayscale’s parent company Digital Currency Group, Barry Silbert, yesterday hinted that Grayscale is making plans to convert its Bitcoin Trust into a spot-settled Bitcoin fund. As reported earlier, new filings from the US SEC show that a bitcoin ETF is certain now.
“Stay tuned,” Barry Silbert responds to whether will Grayscale’s Bitcoin Trust would be converted.
After taking 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 be converted into a BTC-settled ETF. “Stay tuned,” Silbert responded. However, Grayscale Bitcoin Trust investors appear to have been unsettled by Silbert’s remarks, with Twitter user “svrgnindividual” questioning what a restructure would mean for investors holding shares in Grayscale’s Bitcoin Trust. “What happens to us Grayscale investors once the spot ETF is approved? Is our investment converted into ETF shares?” they tweeted.
Barry wen conversion of the trust to a spot, BTC Settled ETF
— Preston Pysh (@PrestonPysh) October 17, 2021
Grayscale had been waiting for SEC to approve a BTC ETF.
Rumors of Grayscale’s purported ambitions for a Bitcoin ETF began circulating last week after a CNBC report citing anonymous insiders claimed that Grayscale was finally waiting for the Securities and Exchange Commission to approve a Bitcoin ETF. As reported earlier, the SEC announced it had accepted the registration of securities from ProShares Trust’s futures-based Bitcoin exchange-traded fund. ProShares’ ETF offers investors exposure to contracts that speculate on the future price of BTC that are settled in cash. According to Grayscale’s latest holdings update, the firm boasts $52.6 billion in assets under management (AUM) — 73% of which is held in the Bitcoin Trust.