Grayscale Investments Seeks to Convert Bitcoin Trust into ETF
Grayscale Investments has filed a new registration statement with the Securities and Exchange Commission (SEC) in its ongoing effort to convert its Grayscale Bitcoin Trust into a spot bitcoin exchange-traded fund (ETF). This move follows a D.C. circuit court ruling that directed the SEC to re-review the firm’s application. Other major asset managers, such as BlackRock and Fidelity, are also seeking approval for spot bitcoin ETFs from the SEC.
Grayscale stated that it was eligible to use Form S-3 for its filing because its shares have been registered under the Securities Exchange Act of 1934 since January 2020 and meet other requirements for the form. The company intends to list the shares on NYSE Arca under the symbol GBTC.
No Rehearing by the D.C. Court
Last week, the SEC did not file an appeal for a rehearing of the court’s ruling, which sparked optimism that a spot bitcoin ETF could be on its way. However, there are still several steps that need to be taken before such an ETF can enter the market.
Grayscale initially brought this case against the SEC last year after its proposal to convert GBTC into a spot bitcoin ETF was rejected. In a letter sent last month, Grayscale requested a meeting with regulators to discuss the conversion of its Grayscale Bitcoin Trust.
SEC Chair Comments on ETF Filings
SEC Chair Gary Gensler confirmed that agency staff is reviewing multiple filings for ETF proposals, including those related to bitcoin. He explained that when an asset manager seeks to take something public, like an ETF, it needs to register with the SEC through a process similar to an initial public offering (IPO). The SEC’s Division of Corporation Finance and Division of Trading and Markets provide feedback to potential issuers.
Despite the progress, it is still uncertain when a spot bitcoin ETF will be approved and available to investors.
Hot Take: The Road to a Bitcoin ETF
The recent filing by Grayscale Investments to convert its Bitcoin Trust into an ETF reflects the growing interest in bringing spot bitcoin ETFs to the market. With other major asset managers also seeking approval, there is hope that a breakthrough may be near. However, regulatory processes and reviews still need to be completed before investors can access these investment products. SEC Chair Gary Gensler’s comments indicate that the agency is actively considering multiple filings for ETF proposals, including those related to bitcoin. While progress is being made, it remains to be seen when a spot bitcoin ETF will finally become a reality.
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