Grayscale Files Updated Bitcoin ETF Prospectus After SEC Meeting

Grayscale Files Updated Bitcoin ETF Prospectus After SEC Meeting

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Grayscale has submitted an updated spot Bitcoin ETF prospectus following a meeting with the Securities and Exchange Commission (SEC). 

Grayscale’s legal representatives and executives had met with the SEC to discuss the product, and the updated ETF prospectus potentially reflects feedback from the SEC. 

Grayscale Submits Updated Filing 

Grayscale is moving ahead with its plans to convert its popular Bitcoin Trust into a spot Bitcoin exchange-traded fund (ETF). The company submitted an updated filing before the Securities and Exchange Commission (SEC) on the 22nd of November. The filing is an amended S-3 prospectus, a type of registration firm used by firms that have previously met other reporting requirements. 

In a post on X, James Seyffart, ETF analyst at Bloomberg, suggested that the filing does not make any significant changes. He initially noted that the biggest update was a suggestion to change GBTC’s ticker to BTC. However, he later clarified that Grayscale has no plans to list it as BTC. Grayscale does have a filing for their Global Composite Bitcoin ETF registered with the BTC ticker. However, that may not be launched if the conversion from GBTC gets approval. 

“Lot of people asking what this means. Haven’t read through all of it but [it’s] just [one] more data point confirming that Grayscale is in talks with SEC and is making updates/changes to their offering docs after discussions with & feedback from the SEC. Looking for any other new info.“

The analyst also noted that the application had shortened a line related to cash orders and had removed some pages of risk disclosures. 

Discussions Between Grayscale And SEC 

The development comes after a memo indicated that members of the Securities and Exchange Commission’s Division of Trading and Markets met with members of Grayscale and law firm Davis Polk. The discussion between the members and Grayscale was primarily centered around NYSE Arca’s listing of the proposed ETF. Grayscale CEO Michael Sonnsenhein also attended the meeting. 

Grayscale’s ETF proposal is very different from other spot Bitcoin applications from the likes of BlackRock and Fidelity. Grayscale proposes to convert an already-existing investment vehicle into an ETF. However, most market watchers agree that the SEC’s discussions with Grayscale bode well for ETF prospects in general. 

Grayscale also secured an important court victory this year that required the SEC to review its original application. However, the SEC is not required to approve the application, only to consider it again after attempting to dismiss it in 2022. 

Could We See A Bitcoin ETF Soon?

According to ETF Store President Nate Geraci, the most important aspect of the meeting between Grayscale and the SEC is that GBTC “conversion” is being referred to as an “uplisting.”

“If Grayscale is able to uplist GBTC to NYSE Arca on the same day other issuers launch spot BTC ETFs, and they make a concerted effort to compete on fees, they have a real shot of dominating this ETF category even with BlackRock in the mix.”

Grayscale has over $20 billion in assets under management for its ETF product, while others will be starting from scratch. Meanwhile, analysts at Bloomberg have increased their spot Bitcoin ETF approval odds to 90% by January.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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