Grayscale Files Amendment to Bitcoin ETF Application
Grayscale, a leading cryptocurrency asset management firm, has submitted an amendment to its registration statement with the US Securities and Exchange Commission (SEC). The amendment, labeled “amendment no. 3,” does not modify any provisions of the prospectus but includes certain exhibits related to third-party relationships.
Cash-Only Strategy and Authorized Participant Omission
The updated application clarifies that Grayscale has adopted a cash-only strategy, where it only deals in cash for shares in the fund. However, the filing does not name an authorized participant (AP) for the conversion of Grayscale Bitcoin Trust (GBTC) into an ETF. This omission raises questions about why Grayscale did not disclose this information, as the SEC typically requires it.
Bitcoin ETF Race Heats Up
Several companies, including Fidelity, Grayscale, and WisdomTree, have listed their authorized participants in updated filings for a US Bitcoin ETF. The SEC has set a deadline of January 10 to decide on these filings. The potential approval of a Bitcoin ETF is highly anticipated in the cryptocurrency space.
Speculation Surrounding Grayscale’s Filing
Grayscale’s CEO, Michael Sonnenshein, hinted at significant developments in the crypto market in a social media post. Some interpret this as anticipation for the potential approval of a spot Bitcoin ETF by the SEC. Reports suggest that the SEC may reach out to Bitcoin ETF issuers soon.
Implications of a Bitcoin ETF Approval
If approved, the conversion of GBTC into an ETF could lower fees and increase liquidity for investors seeking exposure to Bitcoin. Currently holding $26 billion in assets under management (AUM), GBTC could benefit from improved efficiency in tracking Bitcoin’s price.
Hot Take: Grayscale’s Amendment Raises Questions
Grayscale’s recent amendment to its Bitcoin ETF application has raised questions due to the omission of authorized participant details. While the filing aligns with the SEC’s cash-only requirement, the lack of specific information about authorized participants and fees leaves room for uncertainty. As the Bitcoin ETF race heats up with other firms listing their participants, Grayscale’s decision to exclude this information could potentially impact its chances of approval from the SEC. The crypto community eagerly awaits the SEC’s verdict on these filings, as it could have significant implications for market participation and investment.
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