Grayscale, an institutional investor with over $50.8 billion worth of crypto Assets Under Management (AUM) may become a BTC-settled Exchange Traded Fund (ETF) in the near future. Barry Silbert, the president of the company’s parent group called Digital Currency Group gave a direct hint on Twitter when asked by a crypto commentator to comment on the matter.
Grayscale is currently one of the largest holders of Bitcoin in the world. According to its latest company public statement shared on Twitter, it has a whopping $50.8 billion in AUM:
10/14/21 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
Total AUM: $50.8 billion$BTC $BAT $BCH $LINK $MANA $ETH $ETC $FIL $ZEN $LTC $LPT $XLM $ZEC $UNI $AAVE $COMP $CRV $MKR $SUSHI $SNX $YFI $UMA $BNT $ADA $SOL pic.twitter.com/SzbUwWdQkB
— Grayscale (@Grayscale) October 14, 2021
Grayscale is one of the biggest players in the sector and investors have made a considerable amount in investing in crypto through it. However, the very existence of the company can be pointed down to the fact that the USA, the biggest economy in the world doesn’t have an ETF option. As of press time, no ETF has been allowed by the regulators especially the Securities and Exchange Commission (SEC).
So, the very working and business model of Grayscale is to give the US investors another chance at institutional investing. It may not be practical in other countries where ETFs are available like Canada and much of Europe. Once the ETF approvals start (as reported by some sections of the media) then Grayscale will have to alter their business model for sure because an ETF would be a much easier option for the company.
Rumours around a possible Grayscale move to ETF were around the markets ever since insiders leaked information that the company was waiting for an ETF approval in the country.
The CEO Barry Silbert said:
stay tuned
— Barry Silbert (@BarrySilbert) October 17, 2021
Some investors of the Grayscale Bitcoin (GBTC) Fund have voiced concerns when it comes to a restructuring of the entire fund. If such a move happens, they are demanding answers as to what will happen to the shareholders of the fund. If the investors become dissatisfied with the new arrangement, many of them can liquidate their GBTC standings and thus directly affect Bitcoin’s price index itself. Over $38 billion worth of Bitcoin alone is being managed by Grayscale. The investors hold considerable sway and they can impact the index if they all stand united, positively and negatively.
Image Source: pixabay.com
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