Grayscale hints at plans to convert Bitcoin ( $69,256.00 ) trust into BTC-settled ETF

Institutional investment giant Grayscale is reportedly considering converting its Bitcoin ( $69,256.00 ) Trust into a physically settled exchange-traded fund (ETF).

On Oct. 17, Barry Silbert, the CEO of Grayscale’s parent company Digital Currency Group, hinted that Grayscale is making plans to convert its Bitcoin ( $69,256.00 ) Trust into a spot-settled Bitcoin ( $69,256.00 ) fund.

After having taken to Twitter to criticize the cash-settled Bitcoin ( $69,256.00 ) futures ETF recently approved by the U.S. Securities and Exchange Commission (SEC), Bitcoin ( $69,256.00 ) commentator Preston Pysh chimed in to ask Silbert when Grayscale’s Bitcoin ( $69,256.00 ) Trust would be converted into a BTC-settled ETF. “Stay tuned,” Silbert responded.

stay tuned

— Barry Silbert (@BarrySilbert) October 17, 2021

However, Grayscale Bitcoin ( $69,256.00 ) 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 ( $69,256.00 ) Trust.

“What happens to us Grayscale investors once the spot ETF is approved? Is our investment converted into ETF shares?” they tweeted.

Rumors of Grayscale’s purported ambitions for a Bitcoin ( $69,256.00 ) ETF began circulating late week after a CNBC report citing anonymous insiders claimed that Grayscale was waiting for the Securities and Exchange Commission to finally approve a Bitcoin ( $69,256.00 ) ETF.

On Oct. 15, the SEC announced it had accepted the registration of securities from ProShares Trust’s futures-based Bitcoin ( $69,256.00 ) (BTC) exchange-traded fund. ProShares’ ETF offers investors exposure to contracts that speculate on the future price of BTC that are settled in cash.

Related: Grayscale Bitcoin ( $69,256.00 ) Trust FUD is now over as the last GBTC unlock totals just 58 BTC

Despite the ETF’s approval being cited as the primary catalyst for Bitcoin ( $69,256.00 ) ’s recent bullish market action, many analysts have criticized the fund for its cash-settled structure, instead advocating for the SEC to approve a Bitcoin ( $69,256.00 ) ETF that is backed by and settled in BTC.

According to Grayscale’s latest holdings update on Oct. 15, the firm boasts $52.6 billion in assets under management (AUM) — 73% of which is held in the Bitcoin ( $69,256.00 ) Trust. The data suggests that Grayscale’s Bitcoin ( $69,256.00 ) stash comprises roughly 620,000 BTC or 3.3% of Bitcoin ( $69,256.00 ) ’s total supply.



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