An exchange-traded fund (ETF) is a collection of investments such as bonds or stocks. ETFs allow you to invest in many securities at once. They usually have cheaper fees than other types of funds. They are also easier to trade. Like conventional stocks, you can acquire and trade ETFs on a stock market. Designing an ETF to track anything from a single commodity’s price to a huge and diversified group of commodities is possible. Furthermore, it is even possible to design ETFs to follow certain investing strategies. The SPDR S&P 500 ETF (SPY), which tracks the S&P 500 Index, was the first ETF and is still an actively traded ETF today. Grayscale Investments LLC recently met with the Securities and Exchange Commission (SEC) to strengthen its case for converting the Grayscale Bitcoin Trust into a spot bitcoin ETF (ETF). Grayscale stated in a recent presentation to the SEC that transforming its hallmark product into an ETF will “protect investors and the public interest. This will allow the product to follow net asset value better while offering investors the free will to invest in Bitcoin; safely and securely.” Furthermore, according to Grayscale, using an ETF vehicle rather than the present trust structure would “enable improved NAV tracking, lower discounts, and premiums, and release around $8 billion for investors.” The Grayscale Bitcoin Trust, which now manages over $20 billion in assets, is popular for trading at broad premiums...
