Grayscale Meets with SEC for Spot Bitcoin ETF Plans
Crypto asset manager Grayscale has had another meeting with the US Securities and Exchange Commission (SEC) to discuss its plans to convert the GBTC fund into a spot Bitcoin exchange-traded fund (ETF). Following the meeting, Grayscale filed a new preliminary prospectus for the conversion. The company also updated its GBTC agreement for the first time since 2018 in preparation for the transition. Details are still being worked out, but industry analysts believe that progress is being made and approval could come in early January.
ARK and 21Shares ETF Applications
Bloomberg senior ETF analyst Eric Balchunas commented on the ARK and 21Shares spot Bitcoin ETF applications, stating that ARK/21Shares is likely to move $130 million out of GBTC and into ARKB. Ark Invest, which holds a significant stake in Grayscale, may use this to kickstart its own ETF.
Hashdex Delays Application
The SEC also met with Hashdex this week regarding their Bitcoin ETF application. The meeting led to a delay in their application, but industry experts see this as a positive sign. The delay indicates that the SEC is actively working with potential ETF issuers on backend details and plumbing. Hashdex’s application focuses on exchange for physical transactions via CME futures to bring spot Bitcoin into the ETF structure.
BlackRock Presents Revised Model
BlackRock had a meeting with the SEC’s Trading and Markets division to present a revised in-kind model relating to redemption flow. This model aims to address concerns related to the creation and redemption process of shares in an ETF.
Hot Take: Progress Made Towards Spot Bitcoin ETF Approval
The recent meetings between Grayscale, ARK/21Shares, Hashdex, and BlackRock with the SEC indicate that progress is being made towards the approval of a spot Bitcoin ETF. While specific timelines are still uncertain, industry analysts predict that approval could come as early as January 2024. These developments are encouraging for crypto investors who have been eagerly awaiting the launch of a Bitcoin ETF, which would provide easier access to Bitcoin for mainstream investors.
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