Grayscale Investments Advances Towards Bitcoin ETF Approval
Grayscale Investments has taken a significant step towards launching a spot Bitcoin exchange-traded fund (ETF) by filing its Form 8-A with the Securities and Exchange Commission (SEC). This move follows similar actions by Fidelity and Bitwise, indicating a growing trend among financial firms seeking to offer spot ETFs.
Understanding the Importance of Form 8-A
The filing of a Form 8-A is a crucial regulatory requirement for companies looking to list securities on an exchange. For ETFs, it signifies readiness to trade on an exchange once the product is approved. This step is integral to the approval process for Bitcoin ETFs, as demonstrated by Valkyrie’s filing for a Bitcoin Strategy ETF in October 2021.
Grayscale’s Timely Decision
Grayscale’s decision to file its Form 8-A is noteworthy as it closely follows Fidelity’s filing and aligns with an impending deadline set by the SEC. The commission is expected to approve or disapprove 11 spot Bitcoin ETF applications by January 10, with Ark Invest facing the final decision deadline.
Grayscale’s Strategy
Grayscale plans to convert its GBTC fund into a spot Bitcoin ETF. This strategy gained momentum after a court ruling in August deemed the SEC’s initial denial of Grayscale’s application “arbitrary and capricious.” The ruling mandated a re-review by the SEC, which contrasts with the agency’s previous approvals of Bitcoin futures ETFs.
Analysts’ Perspectives
Bloomberg ETF analyst James Seyffart cautiously expressed optimism, stating that these filings indicate potential approval for the first spot ETFs in the US. However, he clarified that while necessary, these 8-A filings do not guarantee approval. Walter Bloomberg echoed this sentiment, emphasizing that the filings by Fidelity and Grayscale mark progress towards potential spot Bitcoin ETF approval.
Grayscale in Talks with JPMorgan and Goldman Sachs
Grayscale is reportedly in discussions with JPMorgan and Goldman Sachs regarding their roles in the proposed spot Bitcoin ETF. These talks follow Grayscale’s amended S-3 application, which did not list any authorized participants.
Pending SEC Decision
The SEC’s decision on these ETFs is expected soon, with analysts predicting a 90% likelihood of approval before January 10. According to sources, an approval decision could be announced as early as tomorrow, followed by the potential launch of these ETFs in the upcoming week.
Hot Take: Bitcoin ETF Approval on the Horizon
The recent filings by Grayscale and Fidelity indicate significant progress towards the potential approval of spot Bitcoin ETFs. While these filings do not guarantee approval, they demonstrate a growing interest among financial institutions in offering Bitcoin ETFs. With the SEC’s decision looming, many are hopeful that this development will pave the way for broader adoption of cryptocurrencies and further integration of digital assets into traditional financial markets.
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