Following SEC Approval, Grayscale Intends to Turn BTC Trust to ETF

After the Securities and Exchange Commission (SEC) approved Bitcoin (BTC) Exchange Traded Funds (ETF), Grayscale plans to leverage the newfound opportunity to convert its Bitcoin (BTC) trust into an ETF.

The CEO of Digital Currency Group subtly insinuated that Grayscale, its subsidiary company is working on making a spot-settled Bitcoin (BTC) ETF out of its Bitcoin (BTC) trust. 

Preston Pysh, the avid Bitcoin (BTC) observer, previously critiqued the decision of the SEC to approve Bitcoin (BTC) Exchange-Traded Funds (ETFs) via Twitter. On the same persistence, while Pysh inquired about when the big change is happening, Silbert simply replied “Stay tuned.”

Grayscale Bitcoin Trust investors, on another note, seem to be uneasy about Silbert’s comments, with Twitter user Sovereign Individual wondering what a reorganization would entail for them.

After a CNBC article quoting unidentified insiders said that Grayscale was expecting for the Securities and Exchange Commission to eventually authorize a Bitcoin ETF, rumors regarding Grayscale’s purported plans for a Bitcoin ETF began spreading just a few days ago.

The Securities and Exchange Commission (SEC) stated on Oct. 15 that it has authorized the filing of securities from ProShares Trust’s Bitcoin (BTC) Exchange-Traded Fund (ETF), which is based on futures. ProShares’ ETF gives investors exposure to cash-settled agreements that theorize on the future price of Bitcoin (BTC).

Even though the ETF’s approval has been credited as the key impetus for Bitcoin’s recent strong market activity, several analysts have condemned the fund for its cash-settled structure, urging the SEC to authorize a Bitcoin (BTC) Exchange-Traded Fund that is backed by and settled in Bitcoin (BTC) instead.

The latest October 15 update by Grayscale shows that the firm has $52.6 billion in assets under management with the Bitcoin Trust accounting for 73% of it. Grayscale’s Bitcoin holdings amount to 620,000 BTC, or 3.3% of the supply of Bitcoin (BTC). 

Also read: SEC Approves First BTC Futures ETF: Crypto Market Cap Surpasses $2.5 Trillion!