Bitcoin: Experts Point Out Key Differences Between BlackRock And Grayscale Bitcoin Trusts

BlackRock recently submitted an application to the Securities and Exchange Commission for a Bitcoin ETF.

While some may assume that this ETF will resemble the Grayscale Bitcoin Trust (GBTC), there are notable distinctions between the two products.

BlackRock’s iShares Trust Vs. GBTC

BlackRock’s iShares product, technically classified as a trust, offers redemptions similar to an ETF, unlike GBTC.

Noelle Acheson clarifies that the market may mistakenly associate “trust” with GBTC’s lack of redemption options, but this is not true for BlackRock’s offering.

The key disparity between a BTC ETF and a trust lies in the ETF’s ability to purchase bitcoin at the end of the day to align the fund’s assets with its price.

On the other hand, a trust operates with a fixed portfolio and lacks the flexibility to adjust its holdings.

Consequently, trusts often trade at varying premiums or discounts compared to the value of their underlying assets.

Grayscale’s Argument And SEC’s Response

The company initiated legal action after the SEC denied the conversion.

This lawsuit is unfolding in a Washington DC court, and a final verdict is anticipated later this year.

Grayscale has presented its argument, contending that both spot and futures ETFs entail comparable risks regarding the price of BTC.

In response, the SEC has stated that its disapproval of Grayscale’s spot ETF was justifiable, adequately explained, substantiated by evidence, and following the provisions outlined in the Exchange Act.

BlackRock’s Spot Bitcoin Fund

BlackRock has unveiled its approach to pricing its spot Bitcoin fund, which will rely on the CF CME Bitcoin Reference Rate.

This rate is derived from the aggregated notional value of Bitcoin across major spot exchanges.

By implementing this method, the investment firm aims to address some of the concerns raised by the SEC.

To safeguard the iShares Bitcoin Trust, BlackRock has selected Coinbase Custody as its custodian.

The trust will be listed on the Nasdaq exchange, offering investors an accessible entry point into the Bitcoin market.

It is worth highlighting that BlackRock, the world’s largest money manager with $9.1 trillion of assets under management as of the first quarter of this year, carries substantial weight in the financial industry.

This influential position suggests that the SEC is unlikely to dismiss BlackRock’s application easily.

As crypto market analyst Joe Consorti remarked in a recent tweet, “Given their reputation, this has the highest likelihood of happening out of all the attempts at a spot ETF so far.”

Our AI articles are NOT written by a real person and are provided for entertainment only. They may contain content which is inaccurate but we are hoping our AI bot, Rose, will become better over time. The AI category is the ONLY section of that has zero human input.

In 2021 TradeHost traded 7,937 Betfair UK, IE, US & AU horse racing and greyhound markets.

2022 saw TradeHost become even more profitable with 22,698 Betfair markets traded.

All trades and bets were streamed live on JuiceStorm TV which was was watched by 124,209 traders in 2022.

All results for the 30,635 Betfair markets traded are here and the charts are here.

Top 100 Comments on

Racing Traders has over 20,000 registered members and more join every day. Find out why with a free trial.

BetTrader from was the 1st application for Betfair & introduced the ladder UI. Invest £99 in yourself with a JuiceStorm EXCLUSIVE crypto only offer for a BetTrader lifetime license and no further payments.

Successful Betfair Traders have the simplest Betfair Trading systems. The difference is their selection process, experience and execution level. Get that difference for yourself with automated trading by TradeHost.
Leave A Reply
Comment Rules

  • Please show respect to the opinions of others no matter how seemingly far-fetched.
  • Abusive, foul language, and/or divisive comments may be deleted without notice.
  • Each JuiceStorm member is allowed two daily comments. Use them wisely.
  • Comments must be limited to the number of words displayed above the comment box.
  • Use branded capitalisation, eg. JuiceStorm, TradeHost, BetTrader, etc or John will get upset.
  • You agree that any comment you make may be used for marketing purposes by
  • You need more than 20 words? Click here for the largest Telegram community for Betfair Traders.