Grayscale Files Amended S-3 for Spot Bitcoin ETF
Grayscale, a leading crypto asset management company, has filed an amended S-3 for its Spot Bitcoin ETF. The filing, submitted to the SEC on December 26, reveals that Grayscale will now only accept cash orders for its Spot Bitcoin ETF investments. Authorized participants can deposit or accept cash from the cash account in connection with the creation and redemption of Baskets. Cash orders will be facilitated by the Transfer Agent and Grayscale Investments, with the help of eligible Liquidity Providers. Bloomberg analyst Eric Balchunas commented on this change, stating that Grayscale’s surrendering to cash-only creations is a significant move.
New Filing Amidst Chairman Resignation
The amended S-3 filing comes shortly after the resignation of Barry Silbert, CEO of Digital Currency Group (DCG), from Grayscale’s Board of Directors. Silbert’s resignation will take effect from January 1, 2024, and he will be replaced by DCG’s Chief Financial Officer, Mark Shifke. This development has led some to speculate that Silbert’s departure could facilitate the conversion of Grayscale Bitcoin Trust (GBTC) to a Spot Bitcoin ETF. Some believe that this move increases the chances of ETF approval by the SEC.
Hot Take: Grayscale Adopts Cash-Only Policy for Spot Bitcoin ETF
Grayscale’s decision to switch to a cash-only policy for its Spot Bitcoin ETF is a strategic move aimed at staying ahead in the race for a Bitcoin ETF. By accepting only cash orders, Grayscale aims to simplify the creation and redemption process of its Baskets. This change could potentially have implications for the approval of their ETF application by the SEC. The recent resignation of Barry Silbert as Chairman of Grayscale’s Board of Directors adds another layer of speculation, with some suggesting that it could pave the way for the conversion of Grayscale Bitcoin Trust to an ETF. Overall, these developments indicate Grayscale’s determination to navigate the evolving regulatory landscape surrounding cryptocurrency investments.
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