Grayscale Executives Meet SEC Officials to Discuss Bitcoin ETF

Grayscale has been keen to bring its spot Bitcoin exchange-traded fund (ETF). The peak came when the asset manager filed a lawsuit against the Securities and Exchange Commission (SEC) when the regulator rejected the ETF application. The ice between both entities seems to have started melting after an SEC memo disclosed about a meeting. 

The memorandum released on Monday, November 20, 2023, informed about the SEC’s meeting with Grayscale Investments regarding Grayscale Bitcoin Trust (GBTC). The officials from the U.S. regulator’s Division of Trading and Markets joined the conversation with CEO Michael Sonnenshein, CFO Ed McGee, legal chief Craig Salm, and several other people from Grayscale Investments and law firm Davis Polk. 

According to the memo, the discussion came in the wake of “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.”

For the background context, Grayscale recently came into a Transfer Agency and Service Agreement with Bank of New York Mellon (BNY Mellon). Following the agreement, the bank will serve as the transfer agent for shares of the trust.

Now given the recent change, according to Bloomberg ETF analyst James Seyffart, the SEC’s division will decide if the 19b-4s form will be approved or rejected right away. The said is used to inform the financial regulator in case of any proposed rule change. 

Grayscale Seeks Approval of GBTC as Bitcoin ETF

Grayscale Investments saw a victory against the SEC in the United States court over the issue of rejecting spot Bitcoin ETF. The asset manager intends to convert its Grayscale Bitcoin Fund (GBTC), which is also the biggest BTC fund, into a full-fledged ETF. However, the regulator did not approve the application. 

In late August this year, the court ruled in favor of Grayscale and said the SEC decision to reject the application was “arbitrary and capricious.”

Later, GBTC filed a new registration with the SEC again in October 2023. After a few days, a U.S. court issued a formal mandate for the SEC to assert the court ruling and asked the regulator to review the application again. 

Grayscale Bitcoin Trust (GBTC) is set to list its shares on NYSE Arca with the symbol GBTC, according to a recent S-3 filing submitted on October 19th. The company’s strategy involves ongoing issuance of these shares, contingent upon approval of its S-3 form and a separate 19b-4 filing from NYSE Arca. 

This move reflects GBTC’s commitment to expanding its market presence and providing increased accessibility to investors.

ETF Race Kickstarted in 2023

The exchange-traded fund (ETF) products for crypto assets are highly anticipated in the cryptocurrency space. Many traditional finance (TradFi) entities were seen stepping into the sector. BlackRock, Fidelity Investment, Valkyrie, Invesco, and several other financial asset managers filed with the SEC for spot Bitcoin ETFs. 

Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.