Institutional investment giant Grayscale is reportedly considering converting its Bitcoin Trust into a physically settled exchange-traded fund (ETF).

On Sun, Barry Silbert, CEO of Grayscale's parent company, Digital Currency Grouping, hinted that Grayscale is making plans to catechumen its Bitcoin Trust into a spot-settled Bitcoin (BTC) fund.

After having taken to Twitter to criticize the cash-settled Bitcoin futures ETF recently approved by the United States Securities and Substitution Commission, Bitcoin commentator Preston Pysh chimed in to enquire Silbert when Grayscale's Bitcoin Trust would be converted into a BTC-settled ETF. "Stay tuned," Silbert responded.

However, Grayscale Bitcoin Trust investors appear to have been unsettled by Silbert's remarks, with Twitter user Sovereign Individual questioning what a restructure would mean for investors holding shares in Grayscale'due south Bitcoin Trust.

"What happens to us Grayscale investors once the spot ETF is canonical? Is our investment converted into ETF shares?" they tweeted.

Rumors of Grayscale's purported ambitions for a Bitcoin ETF began circulating terminal week afterwards a CNBC report citing anonymous insiders claimed that Grayscale was waiting for the SEC to finally approve a Bitcoin ETF.

On Fri, the SEC appear it had accustomed the registration of securities from ProShares Trust'south futures-based Bitcoin commutation-traded fund. ProShares' ETF offers investors exposure to contracts that speculate on the future price of BTC that are settled in cash.

Related: Grayscale Bitcoin Trust FUD is now over as the last GBTC unlock totals merely 58 BTC

Despite the ETF's blessing being cited equally the primary goad for Bitcoin'due south contempo bullish market action, many analysts have criticized the fund for its cash-settled structure, instead advocating for the SEC to approve a Bitcoin ETF that is backed past and settled in BTC.

According to Grayscale'south latest holdings update on Fri, the firm boasts $52.6 billion in assets under management — 73% of which is held in the Bitcoin Trust. The data suggests that Grayscale'southward Bitcoin stash comprises roughly 620,000 BTC or three.iii% of Bitcoin's total supply.