Grayscale plans to convert Bitcoin Trust into an ETF

The asset-management firm Grayscale Investments plans to convert the Bitcoin Trust into an exchange-traded fund (ETF) based on the leading cryptocurrency.

1/ In recent months there’s been a growing number of questions around the possibility of a $BTC ETF in the US. Today we published a blog post to provide clarity and context on what such a development would mean at Grayscale and for $GBTChttps://t.co/3ZWACq1jvw

— Grayscale (@Grayscale) April 5, 2021

“Grayscale products are at different stages of their life cycle, but each of them will be converted into an ETF in the future,” the statement said.

Timelines will depend on the regulator’s decision, the company noted. After the transformation of the Grayscale Bitcoin Trust into a Bitcoin ETF, shareholders will not have to take any action. The asset manager also pledged to reduce fees.

Grayscale added that it filed an application to launch an ETF in 2016 but withdrew it due to an insufficient regulatory framework.

Earlier, similar filings were submitted to the U.S. Securities and Exchange Commission by VanEck, WisdomTree, NYDIG, Bitwise, Valkyrie Digital Assets, SkyBridge Capital and First Trust Advisors. To date, none of the applications has received approval.

Back in March, Grayscale Investments opened nine vacancies referencing a publicly traded fund.