What Grayscale’s S-3 registration means for its spot Bitcoin ETF prospects

On Oct. 19, Grayscale Investments filed an S-3 registration connection with the U.S. Securities and Exchange Commission (SEC) to registry shares of Grayscale Bitcoin Trust (GBTC) nether the Securities Act of 1933, arsenic Globe Newswire reported.

This determination reflects the company’s aspiration to database the shares connected NYSE Arca (a subsidiary of the )under the GBTC symbol, perchance transforming GBTC into a Bitcoin exchange-traded money (ETF) if approved.

Form S-3 registrations are regulatory filings utilized to simplify the reporting process for issuers of registered securities, providing a streamlined way for companies wishing to rise capital. With the filing of an S-3 form, Grayscale has expressed its readiness to contented shares connected an ongoing ground upon the support of NYSE Arca’s exertion connected Form 19b-4 to database the shares and the effectiveness of the Form S-3 to registry the shares.

In different words, filing Form S-3 signifies that Grayscale is assured it met each its reporting requirements to the SEC and has requested the go-ahead to registry and contented shares.

Winding roadworthy to approval

The caller determination by the SEC not to appeal Grayscale’s tribunal triumph perchance hastens the reappraisal of Grayscale’s application. The SEC’s reluctance to situation the August tribunal ruling could yet effect successful a Bitcoin spot ETF, allowing investors to summation vulnerability to Bitcoin without nonstop ownership. This has been a longstanding extremity for Grayscale, arsenic it could alleviate the important discount GBTC shares presently commercialized astatine compared to its nett plus worth owed to the trust’s deficiency of redemption features.

This pivotal improvement arrives pursuing a lengthy legal battle centered astir the SEC’s inconsistent handling of spot and futures Bitcoin ETFs. Grayscale argued that some money types stock akin risks and are priced based connected the aforesaid underlying spot markets. The appeals tribunal agreed, stating the SEC had failed to substantiate the important quality betwixt the 2 arrangements, starring to the unjust rejection of Grayscale’s application.

Moreover, successful airy of the SEC’s determination not to contention the tribunal ruling, different plus managers specified arsenic BlackRock, Fidelity, and Invesco whitethorn spot their akin filings for a spot Bitcoin ETF expedited. Grayscale has described itself arsenic “operationally ready” to person GBTC into an ETF instantly upon receiving SEC approval.