Here I would only specify that Grayscale ETF wouldn’t be a new product, but the conversion of GBTC, where the T stands for “Trust” into and ETF.
6. GBTC to Spot BTC ETF: Transforming GBTC into a spot BTC ETF would be significant because ETFs come with a different set of regulatory approvals and would likely attract more institutional investors. Grayscale aims to convert to better align with these market demands.
Just to expand those previous answers, Grayscale wants to convert to an ETF because it will reduce the spread, or the discount rate, between BTC price and the Grayscale fund price.
ETF allows more flexibility to create and burn shares, which allows to the ETF manager to reduce this spread between the target asset price and the ETF price.
Source:
Quote
That’s because the trust, known by its GBTC
ticker, has traded at an average 25% discount to the price of its underlying asset since early 2021, a discount that should disappear upon conversion, the company said.
https://www.cnbc.com/2022/05/11/grayscale-tells-sec-that-turning-biggest-bitcoin-fund-into-etf-will-unlock-8-billion-for-investors.html
ticker, has traded at an average 25% discount to the price of its underlying asset since early 2021, a discount that should disappear upon conversion, the company said.
https://www.cnbc.com/2022/05/11/grayscale-tells-sec-that-turning-biggest-bitcoin-fund-into-etf-will-unlock-8-billion-for-investors.html
This is critical for the long term health of the GBTC fund.