CBNC released a report that claimed that Grayscale had plans of converting its Bitcoin Trust to a Bitcoin ETF, but was patiently hoping that the US SEC would give the go-ahead order for its Bitcoin ETF.
Based on the report by CBNC, “The Grayscale application begins a 75-day review period, said the source, who declined to be identified because the New York-based company hasn’t disclosed its plans.”
Ever since the report was released, many have commented on the possible effects.. Some have wondered what the effects would be on the Bitcoin Trust, especially since it is storing the biggest BTC holdings.
The CEO of Digital Currency Group, which is the parent company of Grayscale, Barry Silbert has reportedly dropped suggestions that this may be true.
Barry Silbert in a Twitter post said: “Friends don’t let friends buy and hold futures-based ETFs”, and another Twitter user, Preston Pysh commented, “Barry wen conversion of the trust to a spot, BTC Settled ETF”, which made Silbert answer ” Stay tuned.”
The exchange on the microblogging platform has left several tongues wagging with speculations concerning the proposed change by Grayscale.
Some Twitter users are ecstatic about the change, but others like @svrgnindividual are confused about what the change would bring to existing investors in Grayscale.
“@BarrySilbert what happens to us Grayscale investors once the spot ETF is approved? Is our investment converted into ETF shares?”
Questions like this, are yet to be answered at the time of writing this. If approved, this will lead to the legitimization of Bitcoin in the traditional finance realm and may be traded on the Chicago Mercantile Exchange. At the time of writing this, no response concerning the application has been released by SEC.
