Grayscale May Convert Bitcoin Trust Fund to ETF

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

After the US Securities and Exchange Commission (SEC) approved a cash-settled Bitcoin ETF, there was a strong controversy on crypto Twitter over its advantages and disadvantages.

To suspend the controversy, commentator Preston Pysh asked on October 17 when the Grayscale Bitcoin Trust would be converted to an ETF with BTC settlement. In response, the CEO of Digital Currency Group, part of Grayscale, Barry Silbert wrote: “Stay tuned.”

However, not everyone was happy about the news of a possible conversion of the Grayscale Bitcoin Trust. Twitter user svrgnindividual especially drew attention to the fact that nobody knows how the rearrangement will affect investors who own the shares of Grayscale’s Bitcoin Trust and whether they will be converted.

The rumors of Grayscale’s intentions for Bitcoin ETFs emerged after CNBC claimed in a report citing the anonymous insiders that Grayscale had filed an application and is waiting for approval for the Bitcoin ETF from the Securities and Exchange Commission.

On October 15, the SEC approved the registration of securities from the Bitcoin Futures Fund (BTC) ProShares Trust. ProShares offers the ETF investors the ability to enter into contracts that speculate on the future price of BTC and are settled in cash.

Before, the US Securities and Exchange Commission approved the Volt Equity ETF, which provides investors with an easy access to companies that are revolutionizing the Bitcoin (BTC) industry.

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