Grayscale Seeks to Convert Its Bitcoin Trust into BTC-Settled ETF, Investors Unsettled

UTC by Gladis Monteiro · 3 min read
Grayscale Seeks to Convert Its Bitcoin Trust into BTC-Settled ETF, Investors Unsettled
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After the hint dropped by Grayscale, a Twitter user ‘svrgnindividual’ raised concerns about the restructure’s impact on investors holding Grayscale’s Bitcoin Trust shares.

Grayscale came in news after the Securities and Exchange Commission (SEC) approved the cash-settled Bitcoin futures ETF. The SEC accepted the registration of securities from ProShares Trust’s future-based Bitcoin (BTC) exchange-traded fund on 15th October. This ETF allows the investors to enter contracts that speculate on BTC’s future prices that are cash-settled. The move, however, has been criticized by a lot of BTC analysts on the argument that instead of a cash-settled structure, the SEC should have approved a Bitcoin-based ETF settled in BTC currency.

Positive Attitude of Grayscale towards the Recent SEC Approval of ETF

Two days after SEC’s approval of ProShares Trust’s BTC-backed ETF, Barry Silbert, the CEO of Digital Currency Group, the parent company of institutional investment giant, Grayscale, hinted towards the conversion. In a Twitter thread when Bitcoin commentator Preston Pysh asked Silbert about Grayscale’s plans for a BTC-settled ETF, the latter replied ‘Stay tuned’ thus communicating a positive approach towards the recent announcement on BTC settled ETFs. Grayscale’s investors weren’t too happy with Silbert’s remark and questioned the future of their investments post-approval of the ETF.

In order to win investor confidence, Grayscale would need to outline the benefits of the cash-settled ETF.  Alternatively, the various disadvantages commonly associated with Bitcoin ETFs need to be addressed with respect to ETF inaccuracy, limits to crypto trading, lack of bitcoin ownership and so on. The news has not been confirmed yet and there are just speculations about the conversion. Grayscale’s future goals with respect to BTC ETFs remain to be seen.

About the Investment Giant

Grayscale positions itself as a leader in digital currency investment. It believes digital currencies will revolutionize legacy economic, political and social systems. And when this happens, there will be a generational shift in how institutions and individuals view investing. Grayscale wants to tap into this phenomenon and help investors in their exploration of this new asset class. As part of its product offering, Grayscale sponsors several single asset investment trusts like the Bitcoin Trust Fund as well as manages diversified funds like the Grayscale DeFi Fund.

In addition to helping investors manage their assets, Grayscale also provides thought-provoking learning material on their website. You can refer to the Grayscale resource library to find the latest insights and trends on digital currency investing in addition to a Digital Currency Toolkit.

At the time of writing this piece, Grayscale boasted $44.1B in assets under management, whereas its products covered 73.4% of the digital currency market. No doubt, it is the world’s largest digital currency asset manager.

Bitcoin News, Cryptocurrency News, Funds & ETFs, Market News, News
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