Grayscale | Final Word! Grayscale Firmly States "100%" Will Convert GBTC to Bitcoin ETF
Grayscale is the world's largest cryptocurrency trust with its Bitcoin Trust holding assets under management of $38.1 billion. Recently, due to the "negative premium" of GBTC, the market has been curious whether Grayscale will convert GBTC into a Bitcoin ETF. The official announcement was made yesterday (5) regarding their stance on a Bitcoin ETF: "We will definitely convert GBTC into a Bitcoin ETF."
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ETF has always been in Grayscale's plan
In fact, ETF has always been in Grayscale's plan.
Grayscale outlined the "product plan" in the article: Private Placement → Public Quote → Submission of Report → Bitcoin ETF.
As reported earlier, with competitors emerging, including MicroStrategy's "Preferred Convertible Bonds," Canada's Bitcoin ETF, banks' main brokerage businesses, and the launch of other Bitcoin funds, Grayscale's competitiveness in the crypto fund market has rapidly declined. Investors no longer need to take the risk of locking up their funds for six months to invest in Bitcoin.
The reason Grayscale made a big announcement that it will "100%" convert GBTC to an ETF may be to instill confidence in current users who are in the lock-up period for GBTC. Otherwise, when the lock-up period ends, these users may sell GBTC, leading to a more serious negative premium.
According to Bybt data, GBTC has been in a "negative premium" state since March 2 for over a month and the situation is worsening. As of the deadline, GBTC's negative premium has reached -3.7%.
In addition, Grayscale's crypto trust charges a 2% management fee annually, which is also a heavy burden for investors.
Grayscale stated that if GBTC is converted to an ETF in the future, the management fee will be significantly reduced.
As of today, we are still working on converting GBTC to a Bitcoin ETF, but the exact date is still dependent on the regulatory environment. Upon the conversion of GBTC to an ETF, it will be automatic and users will not need to take any further action. Additionally, the management fee will be correspondingly reduced.