Posted 1/8/2024, 3:24:00 PM
Grayscale's Massive Bitcoin Trust Poised to Be Dominant Player if Converted to Spot BTC ETF
- Grayscale has over $27B in assets under management for its Bitcoin Trust, giving it a major advantage over other proposed spot BTC ETFs
- Grayscale can bank on its large volume and liquidity if converted to an ETF, with over 1 million investors and hundreds of millions in daily trading volume
- Tax considerations may discourage investors from switching to other lower-fee bitcoin ETFs to maintain exposure
- Grayscale will likely see some outflows, especially from those who bought at a discount betting on an ETF conversion
- Even with some outflows, Grayscale's size means it would still dominate the landscape for bitcoin ETFs, like "bringing a gun to a knife fight"