Crypto Asset Manager Grayscale Amends Bitcoin ETF Filing, But Leaves Out Crucial Information
Crypto asset manager Grayscale has made another amendment to its Bitcoin exchange-traded fund (ETF) filing with the Securities and Exchange Commission (SEC). However, this time, Grayscale has not disclosed the name of the partner that will serve as an authorized participant for the ETF.
In the world of ETFs, an authorized participant is responsible for creating and redeeming shares of a fund, allowing investors to cash out. While traditional asset ETFs typically do not need to explicitly name authorized participants in their applications, it is considered an important step for Bitcoin ETFs.
Important Step for Bitcoin ETF Approval
The SEC has been urging firms applying for a Bitcoin ETF to name their authorized participants. Experts believe that this is likely the final step in the application process for Grayscale’s highly anticipated product.
Last week, major firms BlackRock and Valkyrie named their authorized participants. However, Grayscale did not specify the fees associated with its proposed ETF, unlike other applicants.
Unique Application: Converting a Trust into a Spot ETF
Grayscale’s application stands out because it aims to convert its popular Bitcoin Trust into a spot ETF. Unlike the Grayscale Bitcoin Trust (GBTC), a Bitcoin ETF would allow investors to redeem their shares and trade openly like stocks.
The SEC initially rejected Grayscale’s application but was later ruled against by a federal appeals court. Now, the SEC must review Grayscale’s application along with others before approving a Bitcoin ETF for trading on stock exchanges.
Possible Approval This Month
While the SEC could still reject applicants, analysts predict that at least one Bitcoin ETF could be approved this month.
Hot Take: SEC Urges Transparency in Bitcoin ETF Applications
The SEC’s push for firms to disclose their authorized participants in Bitcoin ETF applications highlights the importance of transparency in the crypto market. As the regulatory landscape evolves, regulators are seeking to ensure investor protection and prevent market manipulation. The approval of a Bitcoin ETF would be a significant milestone, opening up new avenues for investors to access digital assets and potentially driving further adoption of cryptocurrencies.
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