Grayscale Aims to List GBTC as Spot ETF on NYSE Arca
Grayscale Investments, the leading digital asset manager, is making a new attempt to list its Grayscale Bitcoin Trust (GBTC) as a spot exchange-traded fund (ETF) on NYSE Arca. This move follows a court victory in August where the U.S. Court of Appeals overturned the SEC’s previous denial of Grayscale’s registration bid.
Pressing Forward with ETF Registration Endeavor
Undeterred by past obstacles, Grayscale is determined to proceed with its ETF registration endeavor. The company aims to transform GBTC into a publicly traded fund on NYSE Arca. The recent court ruling highlighted the SEC’s failure to justify different treatment of similar products like bitcoin futures ETFs.
Expedited Process and S-3 Application
After the court ruling, Grayscale urged the securities regulator to fast-track the process, allowing GBTC to become a spot Bitcoin ETF. Additionally, the SEC missed the 45-day deadline to appeal the court’s verdict. To expedite the process, Grayscale filed another S-3 application, which serves as a summary of a traditional S-1 prospectus.
GBTC’s Recent Progress
The announcement of the S-3 application aligns with recent progress made by GBTC. In January 2023, GBTC had a discount to its net asset value (NAV) of over 48%. However, this discount has decreased significantly in recent weeks, reaching 12.54% by October 18, 2023.
Investor Perception and Grayscale’s Role
The decreasing discount indicates that investors are already viewing GBTC differently, even before its approval. Grayscale operates as one of the major subsidiaries of the Digital Currency Group (DCG).
Hot Take: Grayscale’s Persistence Pays Off
Grayscale Investments’ determination to list GBTC as a spot ETF on NYSE Arca has paid off. Following a court victory and the submission of an S-3 application, the company is moving closer to achieving its goal. The decreasing discount on GBTC indicates growing investor confidence in its potential as a publicly traded fund. Grayscale’s persistence in navigating regulatory hurdles demonstrates its commitment to bringing innovative investment opportunities to the crypto market.
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