Grayscale Wants to Turn Its Bitcoin Trust into an ETF

CRYPTONAIRE LYWEEK

CRYPTO investment journal

Grayscale Wants to Turn Its Bitcoin Trust into an ETF

Grayscale, the US investment firm responsible for a mammoth $38.8 billion closed-end Bitcoin trust, has its sights trained on converting the fund into a Bitcoin Exchange-Traded Fund as soon as possible.

“We are 100% committed to converting GBTC into an ETF,” said the firm in an announcement today, adding, “The timing will be driven by the regulatory environment.”

If Grayscale turns the Grayscale Bitcoin Trust into a Bitcoin ETF, Grayscale would charge lower management fees and it would be easier to move money in and out. The announcement restates Grayscale’s long-time ambition to convert the trust into a Bitcoin ETF, reminding investors who are sick of Grayscale’s management fees and concerned that its Bitcoin Trust has traded at a discount for a month straight that there’s a light at the end of the tunnel.

How does Grayscale’s Bitcoin Trust work today?

The Grayscale Bitcoin Trust, launched in 2013, is similar in structure to a closed-end fund. Large institutional investors wire Grayscale some money (or some Bitcoin), then Grayscale invests that money into Bitcoin and sells shares in the trust on the stock market. It’s one of the only ways that US investors can gain exposure to Bitcoin through the stock market.

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