Grayscale suggests plans to convert Bitcoin trust into a BTC-settled ETF
Grayscale appears to be looking to restructure the Bitcoin Trust into a physically-backed Fund after the SEC approved a Bitcoin futures exchange traded fund.
Grayscale, an institutional investment giant, is reportedly considering converting the Bitcoin Trust into an exchange-traded fund (ETF). On Oct. 17, Barry Silbert from Digital Currency Group, Grayscale’s CEO, suggested that Grayscale might convert the Bitcoin Trust into a spot settled Bitcoin fund. After taking to Twitter to criticize the U.S. Securities and Exchange Commission’s (SEC) approved cash-settled Bitcoin futures ETF, Preston Pysh asked Silbert when Grayscale would convert its Bitcoin Trust into a BTC settled ETF. Silbert replied, “Stay tuned.” Barry Silbert (@BarrySilbert), October 17, 2021
Grayscale Bitcoin Trust investors seem to be uneasy about Silbert’s comments. A Twitter user, “svrgnindividual,” asked what a restructure would look like for Grayscale’s Bitcoin Trust investors. They tweeted, “Is our investment converted to ETF shares?” The SEC accepted registration of securities from ProShares Trust’s futures-based Bitcoin exchange-traded fund on Oct. 15. The ProShares Trust’s futures-based Bitcoin (BTC) exchange-traded fund offers investors exposure to contracts that trade on the future price of BTC and are settled in cash. Grayscale Bitcoin Trust FUD is over. The last GBTC unlock was just 58 BTC. Despite the approval of the ETF being cited as the primary catalyst in Bitcoin’s bullish market action, many analysts have criticized its cash-settled structure. Instead, they advocate for the SEC’s approval of a Bitcoin ETF that is backed and settled in BTC. Grayscale’s Oct. 15 holdings update shows that the firm has $52.6 billion in assets under Management (AUM). 73% is in the Bitcoin Trust. Grayscale’s Bitcoin stash is estimated to contain approximately 620,000 BTC, or 3.3% of Bitcoin total supply.
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