SEC and Grayscale Advance Discussions for Spot Bitcoin ETF Listing

Grayscale Investments, a prominent asset manager in the cryptocurrency space, recently had a significant meeting with the Securities and Exchange Commission (SEC).

The central focus of the meeting was Grayscale’s desire to obtain approval to convert its Grayscale Bitcoin Trust (GBTC) into a spot bitcoin Exchange-Traded Fund (ETF). This strategic move aims to bring more transparency and accessibility to investors in the crypto market.

At the heart of this discussion was the proposed NYSE Arca, Inc. rule change, a crucial issue for the listing and trading of GBTC shares. As documented in the SEC memorandum, this meeting was an opportunity to address potential challenges and prospects related to the listing of these securities.

Grayscale, meanwhile, is cooking… pic.twitter.com/W7sI7k07jo

— Frank Chaparro (@fintechfrank) November 21, 2023

This development comes on the heels of Grayscale’s initiative last month when the company submitted a new registration statement to the SEC. This step was considered a milestone in Grayscale’s journey, reinforcing its determination to transform the fiat product into a spot bitcoin ETF. Furthermore, a DC district court strengthened this movement by issuing a formal mandate directing the SEC to review Grayscale’s request.

In an interesting twist, Grayscale and Bank of New York Mellon (BNY Mellon) also reached a recent agreement. BNY Mellon will take on the role of share transfer agent for the fund, an arrangement that underscores the growing integration between traditional financial institutions and the emerging cryptocurrency market.

Grayscale plans to list the shares on NYSE Arca under the symbol GBTC, with continued issuance of shares conditional on approval of its Form S-3 and a separate 19b-4 filing with NYSE Arca. This strategy reveals Grayscale’s intention to make investing in cryptocurrencies more accessible and regulated.

Important to mention, other giants in the asset management industry such as BlackRock and Fidelity are also in the race to gain SEC approval for their own spot bitcoin ETFs. Gary Gensler, chairman of the SEC, expressed last month that the commission is “working” on filings, suggesting tangible progress in this domain.

James Seyffart, ETF analyst at Bloomberg Intelligence, shared insights on the matter. In his words: “I have also heard rumors of other potential spot bitcoin ETF issuers meeting with the SEC in the last week.”

Grayscale had meetings with the SEC’s division of trading and markets yesterday (the division in charge of approving or denying 19b-4’s). Have also heard rumblings of other potential spot #bitcoin ETF issuers meeting with SEC in the last ~week or so. https://t.co/WHs5zxLqVD

— James Seyffart (@JSeyff) November 21, 2023

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.