Home Crypto Grayscale Hints at Plans to Convert Bitcoin Trust to BTC ETF

Grayscale Hints at Plans to Convert Bitcoin Trust to BTC ETF

Grayscale Hints at Plans to Convert Bitcoin Trust to BTC ETF

The institutional investment giant called Grayscale is reportedly considering converting its Bitcoin Trust into a physically settled exchange-traded fund (ETF).

‘Stay informed’

On October 17, Grayscale CEO Barry Silbert hinted that Grayscale is planning to convert its Bitcoin Trust into a “spot-settled Bitcoin fund.”

After Grayscale’s CEO criticized the new Bitcoin futures ETFs on Twitter, Bitcoin analyst Preston Psyh asked the CEO when Grayscale’s Bitcoin Trust would be converted into a Bitcoin ETF. Silbert replied with: “Stay informed”. So it appears that Grayscale is indeed making plans to convert its Bitcoin Trust.

Grayscale investors look alarmed by Grayscale CEO’s comments

However, Grayscale investors appear to be troubled by Silbert’s comments, with one Twitter user wondering what a restructuring would mean for investors who own shares in Grayscale’s Bitcoin Trust.

“What happens to us Grayscale investors once the spot ETF is approved? Will our investment be converted into ETF shares?”

Rumors of Grayscale’s alleged ambitions for a Bitcoin ETF began circulating late last week after a CNBC report in which anonymous insiders claimed Grayscale was waiting for the Securities and Exchange Commission to approve their Bitcoin ETF.

On October 15, the SEC announced that it had accepted the registration of a Bitcoin ETF from ProShares. The ProShares ETF provides investors with exposure to contracts that speculate on the future price of BTC and are settled in cash.

Despite the ETF’s approval being cited as the main catalyst for Bitcoin’s recent price rise, many analysts have criticized the ETFs for its cash-settled structure. Analysts are calling for the SEC to approve a Bitcoin ETF backed and settled in BTC.

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