The SEC Meets with Grayscale over Bitcoin ETF
The Securities and Exchange Commission (SEC) recently discussed Grayscale Investments’ plan to convert the Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF. The meeting took place between Grayscale executives and SEC officials, focusing on “NYSE Arca, Inc.’s proposed rule change to list and trade shares of the Grayscale Bitcoin Trust (BTC) under NYSE Arca Rule 8.201-E.”
Court Ruling on Grayscale’s Bitcoin ETF
In October 2023, the U.S. Court of Appeals ordered the SEC to review Grayscale’s application for a spot Bitcoin ETF after the asset manager sued the regulator for rejecting the conversion of GBTC into a Bitcoin ETF. The court found the SEC’s refusal to be “arbitrary and capricious” and lacked a coherent explanation for accepting similar Bitcoin futures ETF products but not Grayscale’s proposed bitcoin ETP.
Grayscale’s S-3 Filing and Future Plans
Grayscale submitted an S-3 filing to the SEC in October 2023, noting that it meets the requirements for the form and is ready to operate as an ETF upon regulatory approvals. The asset manager aims to list GBTC under NYSE Arca, with Bank of New York Mellon serving as the transfer agent for shares in the trust.
The Bitcoin ETF Race Continues
Despite the rejections of all spot Bitcoin ETF applications to date, the SEC has been under pressure, especially after BlackRock, the world’s largest asset manager, filed an ETF application. Analysts from Bloomberg Intelligence and JP Morgan believe that the SEC will likely approve a spot Bitcoin ETF by early January.
Hot Take: The Future of Bitcoin ETFs
The ongoing discussions and legal battles over Grayscale’s bid for a spot Bitcoin ETF highlight the intensifying competition and regulatory scrutiny within the cryptocurrency industry. As the SEC continues to review and reconsider its position on Bitcoin ETFs, the outcome of these developments will undoubtedly shape the future of digital asset investment and regulatory oversight.
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