Grayscale’s Modified Filing for Bitcoin ETF
Grayscale has submitted a modified filing to convert its GBTC into a spot Bitcoin ETF, complying with the SEC’s cash-only creation and redemption requirement.
Debates over Grayscale’s Compromise
Grayscale has made revisions to its filing, including changes to the fee collection method and how assets are combined. The company appears to be bending to the SEC’s directive for cash-only orders.
The Dispute between Asset Managers and the SEC
The ongoing dispute between asset managers and the SEC centers around cash and in-kind creations. The SEC’s decision restricts broker-dealers from directly engaging with Bitcoin, aiming to enhance tracking of BTC movements and mitigate risks.
Concerns over Investor Protection
Finance lawyer Scott Johnson highlights the challenge posed by the SEC’s reluctance to approve in-kind processes. Grayscale’s cash-based approach introduces uncertainty for investors, deviating from the industry norm.
“Gary has twisted the SEC’s crypto regime into a knot where it simultaneously allows and disallows its existence… All very clear.”
Impact of Barry Silbert’s Resignation
Barry Silbert’s resignation may positively impact Grayscale’s transformation of GBTC into a Bitcoin ETF, potentially coordinated with the SEC before approval.
Hot Take: The Future of Grayscale’s Bitcoin ETF Conversion
The modified filing from Grayscale for a spot Bitcoin ETF conversion demonstrates its willingness to compromise with the SEC’s requirements. While this move may introduce uncertainty for investors due to the deviation from industry norms, Barry Silbert’s resignation could work in favor of Grayscale. As debates continue and regulatory stances evolve, it remains to be seen whether Grayscale’s efforts will result in the successful transformation of GBTC into a Bitcoin ETF.
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