Grayscale met with SEC to discuss spot Bitcoin ETF details

Executives from crypto plus manager Grayscale person met with the Securities and Exchange Commission to sermon details of its flagship Bitcoin (BTC) trust, which the steadfast wants to person to a spot Bitcoin exchange-traded money (ETF).

A Nov. 20 SEC memo disclosed Grayscale CEO Michael Sonnenshein, ineligible main Craig Salm, ETF caput Dave LaValle and 4 different executives, on with 5 Davis Polk instrumentality steadfast representatives, met with the SEC’s part of trading and markets.

The memo said discussions “concerned NYSE Arca, Inc.’s projected regularisation alteration to database and commercialized shares of the Grayscale Bitcoin Trust (BTC) nether NYSE Arca Rule 8.201-E.”

Grayscale elaborate that it had entered a Transfer Agency and Service Agreement with BNY Mellon, according to a filing shared by Bloomberg ETF expert James Seyffart.

The slope volition enactment arsenic the cause for its Grayscale Bitcoin Trust (GBTC), facilitating the issuance and redemption of shares and maintaining shareholder accounts.

In a Nov. 21 X (Twitter) post, Seyffart observed the trading and markets part is successful complaint of approving oregon denying 19b-4s — a signifier utilized to pass the SEC of a projected regularisation alteration by a self-regulatory organization.

Seyffart added Grayscale’s statement with BNY Mellon was “likely thing that was ever going to beryllium required astatine immoderate point” and isn’t an indicator that the GBTC volition soon beryllium converted.

Since it feels similar everyone is asking. Events of the past fewer days haven’t changed my & @EricBalchunas’ odds. We can’t spell immoderate higher than 90% by Jan 10th. That said, things are continuing to determination guardant successful our view.

In a Nov. 22 X post, ETF Store President Nate Geraci opined the “most substantive facet of Grayscale’s SEC gathering yesterday is that GBTC ‘conversion’ is being referred to arsenic an ‘uplisting.’”

“That doesn’t bespeak immoderate issues with conversion to ETF,” helium said.

Grayscale has a existent changeable of dominating this ETF class if it tin “uplist GBTC to NYSE Arca connected the aforesaid time different issuers motorboat spot BTC ETFs,” and they marque a concerted effort to vie connected fees, Geraci added.

Geraci said Grayscale volition participate the markets connected time 1 with $20 cardinal successful assets nether management, adjacent with BlackRock successful the mix.

Related: US tribunal issues mandate for Grayscale ruling, paving mode for SEC to reappraisal spot Bitcoin ETF

Grayscale submitted an S-3 signifier registration connection with the SEC connected Oct. 19, which showed its intention to database the shares of GBTC connected the NYSE Arca nether the ticker awesome GBTC.

In October, a U.S. appellate tribunal issued a mandate for the SEC to reappraisal its determination to contradict Grayscale’s bid to person the GBTC to a spot ETF.

The steadfast is among different large plus managers, including BlackRock and Fidelity, seeking SEC support for spot Bitcoin ETFs.

Seyffart maintained that “things are continuing to determination forward” and his odds of approval — a 90% likelihood that an ETF is approved connected oregon earlier Jan. 10, 2024 — remained the same.

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