Ahead of Court Mandate, Grayscale Files S-3 Registration Statement for Bitcoin Trust
Grayscale Investments has taken a bold step by submitting an S-3 filing with the SEC as it awaits tomorrow’s court mandate on spot Bitcoin ETF approval. The filing represents a registration statement aiming to register shares of the Grayscale Bitcoin Trust (GBTC) in accordance with the Securities Act of 1933.
Grayscale Confirms Eligibility Through Compliance Since 2020
In its effort to transform the Grayscale Bitcoin Trust into a spot Bitcoin ETF, Grayscale Investments has registered a new statement with the SEC. This move follows a directive from a D.C. circuit court for the regulatory body to reassess the company’s proposal.
Grayscale submitted an S-3 filing, commonly used for new share offerings, as part of its strategy. This comes as BlackRock and Fidelity also seek SEC approval for their spot Bitcoin ETFs.
The plan is for GBTC to register its shares on NYSE Arca and issue shares upon approval of NYSE Arca’s Form 19b-4 application and activation of the Form S-3 registration.
Grayscale confirmed its eligibility to utilize Form S-3, citing compliance with requirements and registration under the Securities Exchange Act since January 2020. This filing anticipates an upcoming court mandate from the U.S. Court of Appeals for the D.C. Circuit.
What To Expect From Tomorrow’s Hearing?
The absence of an appeal from the SEC regarding last week’s court decision has sparked hope for an imminent spot Bitcoin ETF. However, there are still several steps to be taken before such a product can enter the market.
Nine fund managers have submitted applications for spot Bitcoin ETFs to the SEC, with Grayscale leading the way. On October 20, the court is set to deliver a mandate to the SEC, potentially compelling the regulator to respond after months of inaction on Bitcoin ETF applications.
The court’s decision will determine if the SEC must revisit Grayscale’s ETF application due to recent rulings. This situation coincides with a shift in the SEC’s approach, as highlighted by Ark Invest’s CEO, Cathie Woods.
Hot Take: Will Grayscale’s S-3 Filing Pave the Way for a Bitcoin ETF?
With Grayscale Investments filing an S-3 registration statement for its Bitcoin Trust, it appears that the company is making significant moves towards transforming its trust into a spot Bitcoin ETF. The upcoming court mandate could reinforce its preliminary decision from August and potentially push the SEC to respond to Bitcoin ETF applications.
While there is optimism within the industry, it is important to note that there are still hurdles to overcome before a spot Bitcoin ETF can become a reality. However, with multiple fund managers submitting applications and a shift in the SEC’s approach, there is growing anticipation for the approval of a Bitcoin ETF in the near future.
Overall, Grayscale’s S-3 filing is a significant development that highlights the increasing efforts and progress being made towards bringing a spot Bitcoin ETF to market.
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