Grayscale’s Plan for a Spot Bitcoin ETF
Grayscale is moving forward with a plan to change its Bitcoin Trust into a spot Bitcoin exchange-traded fund (ETF) after meeting with the Securities and Exchange Commission (SEC) and filing a new prospectus. The company filed a new preliminary prospectus on November 22 for the conversion.
Changes in the Prospectus
The major update in the new prospectus is the plan to change GBTC’s ticker to BTC, but it is not actually filing to list as BTC. Grayscale does have a filing for its Global Composite Bitcoin ETF registered with the BTC ticker, but that may not be launched if the conversion from GBTC is approved.
Grayscale also shortened the filing and made some amendments to the risk factors and disclosures, as per Bloomberg Intelligence ETF expert James Seyffart.
Discussion with the SEC
Grayscale executives and legal representatives met with the SEC to discuss the product, involving “NYSE Arca, Inc.’s proposed rule change to list and trade shares of the Grayscale Bitcoin Trust under NYSE Arca Rule 8.201-E.”
Grayscale also revealed a transfer agency and service agreement with BNY Mellon, which will act as the transfer agent for GBTC, facilitating the issuance and redemption of shares, maintaining shareholder accounts and communication.
The Odds of a Spot Bitcoin ETF Increase
The odds of Bitcoin spot ETF approval are increasing, with analysts from Bloomberg raising it to 90% by January, even with the SEC’s delays. ETF Store President Nate Geraci noted that Grayscale’s “uplisting” of GBTC to NYSE Arca could potentially give them a competitive edge if they can compete on fees.
Hot Take
Grayscale’s move to convert its Bitcoin Trust into a spot Bitcoin ETF marks a significant step in the growing competition and potential dominance of the ETF category. The shortened filing, ticker change, and transfer agreement with BNY Mellon signal a strong commitment to making this conversion a reality, despite the SEC’s delays. With the odds of approval increasing, it’s clear that Grayscale is positioning itself to lead the industry in this space.
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