Grayscale Form S-3 Promoted To Convert To Bitcoin ETF

Key Points:

• Grayscale advances towards converting GBTC into a Bitcoin ETF after a legal triumph in August.
• The company submits Grayscale Form S-3, a crucial step in the process.
• The transformation’s success depends on securing three key approvals, potentially reshaping the crypto-ETF landscape.

Grayscale, a prominent crypto asset manager, has taken a significant step toward transforming its Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund (ETF). This comes in the wake of a legal victory in August, where the DC Circuit Court of Appeals deemed the SEC’s previous denial of a Bitcoin ETF proposal as “arbitrary and capricious.”

Grayscale Form S-3 Towards Bitcoin ETF Conversion

In a recent announcement, the company disclosed that they have submitted Grayscale Form S-3, an integral part of their efforts to convert GBTC into an ETF. This maneuver follows their commitment to cooperate closely with the Securities and Exchange Commission (SEC) to expedite matters related to GBTC investors.

Typically, issuers submit a registration statement using Form S-1 for the initial public offering of equity securities. However, GBTC qualifies for Grayscale Form S-3, a shorter document that incorporates SEC disclosures and reports by reference, owing to its registration under the Securities Exchange Act of 1934 since January 2020.

The transformation hinges on three critical approvals: NYSE Arca’s 19b-4 filing endorsement, obtaining Regulation M relief, and the SEC’s declaration of the effectiveness of Grayscale Form S-3.

Grayscale’s Path to Reshaping the Crypto-ETF Landscape

Grayscale’s persistence in pursuing this path reflects their strategic approach following the August court ruling. This move marks a pivotal phase in the company’s journey, given its prior legal tussles with the SEC over similar initiatives.

The legal triumph in August labeled the SEC’s previous denial as arbitrary, and now the industry anticipates a definitive mandate from the court this week, potentially reshaping the crypto-ETF landscape. Industry observers have grown increasingly optimistic about the prospects of GBTC’s evolution into an ETF.

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