Grayscale to Convert Bitcoin Trust into a BTC-SETTLED ETF

Grayscale Investments, an institutional investment giant, has reportedly started to plan to convert its Bitcoin Trust into an ETF (Exchange Traded Fund) that is physically settled. 

Grayscale to Convert Bitcoin Trust into a BTC-SETTLED ETF

Grayscale Investments, an institutional investment giant, has reportedly started to plan to convert its Bitcoin Trust into an ETF (Exchange Traded Fund) that is physically settled. 


Barry Silbert, the CEO of Digital Currency Group (the parent company of Grayscale Investments), has hinted that Grayscale has started to make plans to convert its Bitcoin Trust into a Bitcoin fund that is spot settled. Silbert made this comment while answering the questions asked by Bitcoin commentator Preston Pysh. When Preston asked when the Bitcoin Trust of Grayscale would be converted to a bitcoin settled ETF, Silbert responded by saying, “Stay tuned.”


However, Silbert’s comment seems to have unsettled many investors. Some have started to ask what a restructure would mean for investors holding shares in Grayscale’s BTC Trust. A Twitter user “svrgnindividual” asked:


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


Rumors of the likely ambitions of Grayscale to have its own Bitcoin ETF started late last week after a CNBC report claimed that Grayscale Investments is waiting for the SEC’s nod for final approval of a Bitcoin ETF.  


The October 15, 2021 update of Grayscale’s latest holdings shows that its AUM (Assets Under Management) is US$52.6 billion, out of which 73% is held in the Bitcoin Trust. Reports say that Grayscale currently holds around 620,000 BTCs, which is around 3.3% of the total supply of Bitcoin.