Yesterday, Grayscale submitted its updated request to the SEC for the issuance of a Bitcoin spot ETF. This is likely the final version that will be reviewed by the SEC. The Grayscale Bitcoin spot ETF is not a new ETF but rather a transformation of the current Grayscale Bitcoin Trust (GBTC) into an ETF. GBTC has been around for years and currently has an AUM of over $27 billion. It has issued almost 700 million shares on the market, each corresponding to an AUM of 0.00089459 BTC.
However, GBTC shares can only be traded OTC and are not listed on traditional exchanges, and they are also not redeemable. By transforming into an ETF, GBTC will be freely tradable on stock exchanges and allow shareholders to return their shares in exchange for BTC.
Grayscale has submitted another request to convert GBTC into a Bitcoin spot ETF after winning a lawsuit against the SEC’s initial rejection of their previous request. The SEC did not appeal the court ruling, so it is expected that the new request will be approved. The SEC is likely to approve all requests for Bitcoin spot ETFs simultaneously. The market launch of Grayscale’s Bitcoin spot ETF could happen as early as Monday.
The impact on the price of Bitcoin may be mixed. The news of ETF approval seems to have already been priced in by the markets, potentially leading to a “sell the news” scenario that could cause a temporary drop in price. However, if the ETFs attract new investors and generate high trading volumes, it could boost confidence and potentially lead to a price increase in the medium to long term.
Hot Take: Grayscale Submits Updated Request for Bitcoin Spot ETF Approval
Grayscale has submitted its final request to the SEC for the issuance of a Bitcoin spot ETF. If approved, this would transform their existing GBTC into an ETF that can be freely traded on stock exchanges and redeemed for BTC. Grayscale’s previous lawsuit against the SEC resulted in a court ruling that favored them, and the SEC did not appeal. This suggests that the new request is likely to be approved. The market launch of the Bitcoin spot ETF could happen as early as Monday. While the news may initially cause a drop in Bitcoin’s price, it could have a positive impact on sentiment and attract new investors in the long run.
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