Grayscale Investment Company, known for Bitcoin Trust (GBTC), will apply for Bitcoin futures ETF

Grayscale Investments uses its Grayscale Bitcoin Trust (GBTC) Is well-known, and is planning to submit an application early next week to convert its flagship fund into a spot ETF. Grayscale has always been a leader in the field of digital assets, and due to competition, it is now seeking to transform its funds.

The first Bitcoin futures ETF will be traded at the beginning of next week, adding more competition to the grayscale
Last Friday, the US Securities and Exchange Commission (SEC) approved the first Bitcoin futures ETF, which will be traded on the New York Stock Exchange early next week.This move was hailed as a "watershed moment" by many, and Bitcoin finally consolidated its legitimacy as an asset class for Wall Street and mainstream investors.
Grayscale investment company, known as Bitcoin Trust (GBTC), will apply for Bitcoin futures ETF illustration

The ETF managed by the investment company ProShares has a lower management fee of 0.95%, while Grayscale's management fee is 2%.Another benefit provided by the new ETF is that there is no redemption period-since GBTC Since its inception, this has always plagued GBTC investors.

Why the gray-scale potential spot Bitcoin ETF may outperform the futures ETF
Bitcoin futures ETFs are a step in the right direction to make it easier for everyday investors to obtain cryptocurrencies; however, many cryptocurrency investors believe that compared to spot ETFs that hold actual bitcoins, ETFs are The utilization of derivative contracts traded on exchanges (CME) will prove to be much worse.

Contango is a phenomenon that occurs when the futures price is higher than the expected future spot price, which means that because the expiration date of the Bitcoin futures contract is higher than the spot price of the cryptocurrency, investors will lose potential earnings. Eagle Brook Advisors Research Director Joe Orsini explained the following shortcomings in his Twitter post: “Futures-based #bitcoin ETFs? Buyer Beware. A thread on contango, using USO ETF (a futures-based ETF on crude oil) to compare performance of Spot WTI Crude, 1st-month Crude Futures, and a futures-based ETF."

If approved, Grayscale's spot bitcoin ETF will be backed by actual bitcoin, rather than derivatives that track cryptocurrency prices. Grayscale already owns a large part of the bitcoin supply in circulation worldwide.

Barry Silberts, founder of Digital Currency Group and Grayscale Investments, hinted on Twitter that GBTC is about to change.He joked, “[Friends] will not let friends buy and hold futures-based ETFs.” However, there may be some truth behind the statement.

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