Grayscale Files Registration Statement to Convert Bitcoin Trust into ETF
Investment firm Grayscale has submitted a registration statement to the U.S. Securities and Exchange Commission (SEC) in its ongoing effort to transform its Grayscale Bitcoin Trust into a spot Bitcoin exchange-traded fund (ETF). This move follows a recent ruling by the D.C. District Court, which instructed the regulator to reconsider Grayscale’s application. Grayscale opted for an S-3 filing, a condensed version of the typical S-1 filing used for issuing new shares. Other major asset managers like BlackRock and Fidelity are also seeking SEC approval for spot Bitcoin ETFs. Grayscale clarified that it can file on Form S-3 because its shares have been registered under the Securities Exchange Act of 1934 since January 2020 and fulfill other form requirements.
BlackRock Also Updates Filing in Response to SEC Comments
In addition to Grayscale, investment giant BlackRock has filed an updated prospectus, likely as a response to SEC comments similar to those made by Ark and Fidelity. This filing indicates that issuers are engaged in discussions with the SEC regarding ETF approvals.
Court Grants Review of SEC’s Denial of Grayscale’s ETF Conversion
A federal court recently upheld a lawsuit filed by Grayscale entrepreneur Barry Silbert against the SEC. The court granted the company’s request to review the commission’s decision and overturn its ruling. The court argued that fraud and manipulation in both futures and spot markets pose similar risks due to their high correlation.
Hot Take: Progress Towards Spot Bitcoin ETFs Continues Amid Regulatory Challenges
The latest actions by Grayscale and BlackRock reflect the ongoing efforts to secure regulatory approval for spot Bitcoin ETFs. While facing challenges from the SEC, these investment giants are persistently pursuing their goal of introducing ETFs tied to the leading cryptocurrency. The court’s decision to review the SEC’s denial of Grayscale’s ETF conversion is a positive development for the industry. As institutional interest in Bitcoin grows, the launch of spot Bitcoin ETFs could provide a more accessible and regulated investment avenue for investors. However, the outcome of these regulatory battles remains uncertain, and market participants will closely monitor any updates from the SEC.
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