Grayscale files revised application for Bitcoin spot ETF, details here

Journalist

Posted: December 27, 2023

• Grayscale agreed to the cash-only mannequin as mandated by the SEC.
• Grayscale’s utility is due for a call on the tenth of January.

Crypto asset administration agency Grayscale filed a revised S-3 submitting with the U.S. Securities and Change Fee (SEC) to transform its Grayscale Bitcoin Belief (GBTC) right into a spot Bitcoin [BTC] ETF, in accordance with Bloomberg analysis analyst James Seyffart.

UPDATE: @Grayscale simply filed one other amended S-3 to transform $GBTC right into a #Bitcoin ETF. pic.twitter.com/TKPP9ufa9X

— James Seyffart (@JSeyff) December 26, 2023

Grayscale compromises for approval

Recall that the regulator has mounted twenty ninth December because the deadline for submitting remaining modifications to respective filings. Companies lacking this closing date gained’t be thought-about for the primary wave of potential approvals in January 2024.

One of many notable features of the amended submitting was Grayscale agreeing to the cash-only mannequin as mandated by the SEC. Seyffart seen this improvement as “bending the knee” by the world’s largest digital asset supervisor.

Nonetheless, Grayscale was not the primary to succumb to the diktat. BlackRock and ARK Make investments beforehand made modifications to their filings to adjust to the money creation and redemption mannequin.

Understanding the battle

For the uninitiated, SEC’s cash-only requirement implies that ETF’s underlying property might be exchanged/redeemed with a market maker solely through money transactions, versus the in-kind mannequin prevalent throughout stock-based ETFs.

Whereas this helps in aligning the ETF’s share value with the underlying asset, on this case Bitcoin, it might make the share costlier for traders.

Grayscale’s stance mirrored that it was keen to compromise so as to be among the many first wave of approvals.

On the entire, the corporate has been upbeat about its prospects ever since a court docket ruling in its favor in August. The court docket had ordered the SEC to rethink its prior denials of Grayscale’s request to transform the belief right into a spot Bitcoin ETF.

Grayscale’s utility is due for a call on the tenth of January.

How a lot are 1,10,100 BTCs price at the moment?

GBTC low cost narrows

Because the authorized victory, the fund’s low cost to its underlying Bitcoin holdings have narrowed significantly. Based on Coinglass, it dropped to five.51% as per a current replace.

Usually, when the low cost narrows, it implies that traders have been having a extra bullish view on GBTC. Coinglass predicted that the low cost shall be closed within the first quarter of 2024.

Supply: Coinglass