Grayscale’s CEO Barry Silbert hinted at plans to convert its Bitcoin Trust into a spot-settled Bitcoin fund. The move is seen as a response to the recent approval of ProShares’ Bitcoin ETF, which offers investors exposure to Bitcoin contracts settled in cash.
Grayscale Bitcoin Trust Holdings
Grayscale’s Bitcoin Trust has $52.6 billion in assets under management, with 73% held in the Bitcoin Trust. The fund’s holdings include approximately 620,000 BTC or 3.3% of Bitcoin’s total supply.
SEC Approval
The SEC recently approved ProShares’ Bitcoin ETF, citing its cash-settled structure as a primary catalyst for Bitcoin’s recent bullish market action. However, many analysts have criticized the fund for its structure, advocating for a Bitcoin ETF backed by and settled in BTC.
Grayscale’s Response
Grayscale CEO Barry Silbert responded to Twitter user “svrgnindividual” asking about the implications of a Bitcoin ETF conversion for investors.