Grayscale’s Meetings with SEC
On November 20, Grayscale executives, including CEO Michael Sonnenshein, held discussions with the SEC’s division of trading and markets. They discussed the proposed rule change by NYSE Arca, Inc. to list and trade shares of the Grayscale Bitcoin Trust (BTC) under NYSE Arca Rule 8.201-E.
In response, Grayscale revealed the execution of a Transfer Agency and Service Agreement with BNY Mellon. BNY Mellon will serve as the agent for Grayscale Bitcoin Trust (GBTC), managing the issuance and redemption of shares and overseeing shareholder accounts.
In a tweet, Bloomberg ETF analyst James Seyffart said the trading and markets division is responsible for approving or denying 19b-4s forms. Seyffart mentioned that the agreement with BNY Mellon likely indicates a future requirement and doesn’t signal an imminent conversion of GBTC.
Prospects for Bitcoin ETF and Grayscale
Despite the recent inquiries and prospects, it is projected that the odds for the upcoming events are still around the same as before. Crypto mom and SEC Commissioner Hester Pierce emphasized that there’s no reason for the SEC to stand in the way of a Bitcoin ETF.
She hinted at the Graysscale’s victory over the SEC for converting its GBTC product to a spot Bitcoin ETF as a positive development. However, Pierce did not disclose whether the SEC is considering approving all Bitcoin ETF applications at once.
Grayscale is well-positioned to be a leader in the ETF sector. The ETF Store President Nate Geraci noted that Grayscale is poised to enter the market with $20 billion in assets under management from day one. Bloomberg expects the Bitcoin ETF market to be a $100 billion. This could give Grayscale a lion’s share in the market.
Hot Take
Grayscale’s discussions with the SEC and its agreement with BNY Mellon for its spot Bitcoin ETF indicate positive developments. While the prospects for Bitcoin ETF seem promising, it will be interesting to see if Grayscale emerges as a dominant player in this space.
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