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Grayscale Plans To Convert Their Bitcoin Trust Into A BTC Spot ETF As Grayscale Believes Spot ETFs Are Far Better For Investors Than Bitcoin Futures ETFs

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Digital asset manager Grayscale Investments plans to convert their Bitcoin trust to a Spot Exchange Traded Fund (ETF).

According to CNBC, a person with knowledge of the matter told that Grayscale will immediately send documents to the SEC for approval when the agency approves the first futures ETF.

Read: SEC Tacitly Approves First Bitcoin Futures ETF

Grayscale’s plans to transform the Bitcoin Trust (GBTC) into an exchange-traded fund became known back in April. At that time the company said that its products are at different stages of the life cycle, but “each of them in the future will be transformed into ETFs.”

GBTC is the largest trust managed by Grayscale. As of October 15, its volume was $38.68 billion. The total AUM is estimated to be $52.6 billion.

CNBC writes:

“Grayscale Investments plans on filing an application to convert the world’s biggest bitcoin fund into a spot ETF early next week, according to a person with knowledge of the matter.

The investment firm had intended to file its application to the Securities and Exchange Commission as soon as the agency allowed efforts by competitors for a futures-based bitcoin ETF, said the person. That happened late Friday.”

Read: Twitter CEO, Jack Dorsey Said Square Is Considering Building A Bitcoin Mining System


In the case of Grayscale Bitcoin ETF, we are talking about a spot ETF, the underlying asset of which will be Bitcoin itself, and not a derivative. Many experts consider such a tool to be more effective.

Co-founder of the venture capital company Morgan Creek Digital, Anthony Pompliano shared his opinion about BTC spot ETFs with MarketWatch.

He told Marketwatch:

‘But is the bitcoin futures ETF actually the best thing? Honestly, probably not. The approval of a bitcoin “spot” ETF would be better for investors, both from a price tracking and fee structure standpoint. But beggars can’t be choosers in the beginning. So we are likely going to see the bitcoin futures ETFs trading at the start of next week.’

Read: North Vancouver Will Be World’s First City Heated By Bitcoin

Bloomberg analysts have also previously criticized futures ETFs, which are preferred by SEC chief Gary Gensler. According to Gensler, Bitcoin futures ETFs are more reliable because they are based on the Investment Company Act of 1940.


In contrast, Grayscale CEO Mike Sonnenstein believes the regulator is making a mistake by approving futures funds before spot ones. He called the SEC’s position “short-sighted” and said that such a product would only harm investors.

Read: El Salvador President, Nayib Bukele Says Citizens Are Using More USD To Buy Bitcoins

The chief investment officer of Valkyrie Investments Stephen McClurg noted that judging by the words of Gensler, “purely spot bitcoin ETF” will not receive approval in the near future.

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Mark Brennan
Mark is 27, holds a Master degree in Business Administration, and works as a content Creator at TheCryptoBasic mostly on Crypto Market Updates. Since 2014 he has been active in the crypto sector. Thanks to the Business College in which other than Business subjects, he was taught about the disruptive potential of Blockchain. His interests include Blockchain technology and Crypto Market innovations. He also founded a small startup in which he gives lectures on cryptocurrencies.


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