Grayscale Applies for Bitcoin ETF with SEC
Grayscale has submitted a new application to the Securities and Exchange Commission (SEC) in an effort to establish a spot Bitcoin exchange-traded fund (ETF) in the United States through its Grayscale Bitcoin Trust. The filing indicates that Grayscale plans to list shares of the Grayscale Bitcoin Trust on the New York Stock Exchange (NYSE) Arca.
Rationale Behind the Move
Unlike typical initial public offerings, which use Form S-1 registration statements, GBTC filed an S-3 form registration statement with the SEC. Grayscale explained that its shares have been registered under the Securities Exchange Act of 1934 since January 2020 and meet other requirements of the form. The company stated that it remains committed to working with the SEC to convert GBTC into an ETF.
Conditions for Transitioning to an ETF
Before transitioning GBTC into an ETF and issuing registered shares through Form S-3, several conditions must be met. These include approval of NYSE Arca’s 19b-4 application, availability of an exemption or Regulation M relief, and declaration of effectiveness by the financial regulator.
Invesco Filing
In addition to Grayscale’s application, Galaxy Digital Fund and Invesco have revised their joint application for a spot Ether ETF. Several other digital asset heavyweights, including VanEck, ARK Invest, Hashdex, and Grayscale Galaxy, have also filed for Ether spot ETFs, making Invesco the fifth player in the US market.
Hot Take: Growing Interest in Crypto ETFs
The recent filings by Grayscale and Invesco reflect the growing interest in cryptocurrency exchange-traded funds (ETFs) in the United States. These ETFs would provide investors with a regulated and easily accessible way to gain exposure to Bitcoin and Ether. As more major players enter the market, it indicates a potential shift in the regulatory landscape and a greater acceptance of cryptocurrencies as mainstream investment assets.
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