Grayscale Investments Moves Forward with Bitcoin ETF Plans
Grayscale Investments is pressing ahead with its plans to launch a spot Bitcoin ETF after the SEC decided not to contest a court ruling from August. This is a significant milestone for Grayscale, which has faced legal battles with the SEC in the past over similar endeavors. Insider sources have revealed that Grayscale submitted a new application on Thursday, starting the necessary procedural step for further discussions with another division of the SEC post-litigation.
Legal Victory and Potential Impact
In August, the DC Circuit Court of Appeals affirmed Grayscale’s legal triumph, stating that the SEC’s previous denial was “arbitrary and capricious.” This highlighted the inconsistency of approving Bitcoin futures ETFs while obstructing Grayscale’s proposals. The court is expected to provide a conclusive mandate this week, potentially reshaping the landscape for crypto ETFs.
Grayscale Files S-3 Form for GBTC Shares
Grayscale has submitted an S-3 form to register GBTC shares under the Securities Act 1933. This is a departure from the traditional use of the S-1 form for equity securities’ initial offerings. The company chose the S-3 form because GBTC has been an SEC-reporting entity since January 2020. Grayscale’s strategic approach following the Court of Appeals’ decision has increased optimism regarding GBTC’s transformation into an ETF.
SEC Reviews Key Approvals
Grayscale clarified that three critical approvals are needed for GBTC’s transformation into an ETF: sanctioning NYSE Arca’s 19b-4 filing, securing Regulation M relief, and obtaining the SEC’s official declaration of effectiveness for the S-3 form. While one arm of the SEC reviews the 19b-4 application and Regulation M compliance, another will scrutinize the S-1 and S-3 submissions. Grayscale has expressed its readiness to transition GBTC into an ETF and is eager to engage with the SEC to expedite the process.
Hot Take: Grayscale’s Persistence Pays Off
Grayscale Investments’ persistence in pursuing a Bitcoin ETF has paid off with the SEC’s decision not to contest the court ruling from August. By submitting a fresh application and leveraging the S-3 form, Grayscale is taking strategic steps towards transforming GBTC into an ETF. The industry awaits the court’s conclusive mandate, which could potentially reshape the crypto-ETF landscape. If approved, this development would provide more opportunities for investors to access Bitcoin through regulated financial products.
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