In light of the US Securities and Exchange Commission (SEC) approval of the Bitcoin futures ETF, asset management firm Grayscale Investments is set to enter a new market.
The CEO of Digital Currency Group, Grayscale’s parent company, Barry Silbert, said the company is considering transforming its Bitcoin Trust into an ETF for Bitcoin. On question When the company plans to launch Bitcoin ETFs, Silbert evasively replied, “Stay tuned.”
Investors in the Grayscale Bitcoin Trust, however, are concerned about Silbert’s announcement of converting the trust into an ETF. Twitter user “svrgnindividua” asked how the transformation will affect investors who have Grayscale Bitcoin Trust in their portfolio: “What happens to us Grayscale investors after the spot ETF is approved? Are our investments converting into ETF stocks? ”
Grayscale’s Bitcoin ETF plans originally surfaced late last week. CNBC, citing anonymous sources, reported that Grayscale is waiting for the SEC to accept Bitcoin futures ETFs.
Todd Rosenbluth, director of ETF and mutual fund research at CFRA Research, said earlier that regulators would first approve a futures ETF for bitcoin, and only then for the cryptocurrency itself. And so it happened – the SEC approved the launch of the ETF on Bitcoin futures company ProShares on Friday. Next, Jacobi Asset Management announced that it received approval to launch an ETF on Bitcoin from the Guernsey Financial Services Commission (GFSC).
At the same time, Parker Lews, head of business development at DeFi Unchained Capital, warned investors that the exchange-traded fund for Bitcoin carries additional risks. This is especially true for private investors, who are not used to working with such complex financial instruments, unlike institutions.