Grayscale Bitcoin Trust may convert into Bitcoin Spot ETF

Due to Increasing competition of the Bitcoin ETF & Bitcoin futures ETF, Grayscale decided to change their GBTC funds into Bitcoin spot ETF, reportedly.

As we know, Grayscale is a highly popular asset manager firm, which is known for its Bitcoin trust (GBTC), that allows people to invest in Bitcoin easily. But the current situation is going to be different because recently the US securities and exchange commission gave approval for a Bitcoin futures ETF and also they will give approval to 4-5 other filed applications, as expected from the filing numbers of applications with SEC. 

Since, SEC suspended the decision of Bitcoin spot ETF by 45 days and they are only focusing on the Bitcoin futures ETF applications approval, so Grayscale firm believes that there are huge chances that they will face high competition after Bitcoin ETF approvals also. So reportedly they are planning to bring their Bitcoin spot ETF products by converting the GBTC funds. 

Possible Competition Grayscale

Currently Grayscale is charging 2% management fees, while approved ProShares firm will charge only 0.95%. And also new ETFs will provide lack of redemption time over what Grayscale offers. So here the decision of Grayscale is ready to move with this trend.

In the present time, people are not much aware about the Bitcoin futures ETF and Bitcoin spot ETF. 

Bitcoin Futures ETF based upon the contract based investment that tracks price of Bitcoin, while Spot ETF actually backed by the actual Bitcoin funds, which have very low risk over Bitcoin futures. 

Here, Grayscale firm is planning to go with the Bitcoin ETF fund instead of Bitcoin future ETF, which is much similar to their existing products Bitcoin Trust (GBTC). 

Barry Silberts, founder of Grayscale investment & Digital Currency group taken to the twitter and wrote 

 “.. (f)riends don’t let friends buy and hold futures-based ETFs.” 

Maybe there can be another meaning of this tweet, but here what experts believe, is revealed. 

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