Grayscale updates its Bitcoin ETF application following SEC talks
In a move that suggests potential progress in the approval process for a spot Bitcoin exchange-traded fund (ETF), Grayscale has submitted an updated filing for its spot Bitcoin ETF just days after engaging in talks with the US Securities and Exchange Commission (SEC).
The amended S-3 prospectus reflects feedback from the SEC, showcasing the company’s responsiveness to regulatory discussions. This indicates that Grayscale is committed to meeting SEC requirements and potentially making headway in the ETF approval process.
The updated filing on November 22 involves an amended S-3 prospectus and includes changes such as a modification in the fee structure, shifting from monthly to daily fees. According to Bloomberg ETF analyst James Seyffart, while the changes may not be groundbreaking, they highlight Grayscale’s ongoing dialogue with the SEC. A company spokesperson clarified that the fee structure modification is a structural enhancement rather than an immediate fee reduction.
The discussions that led to the updated filing took place during a recent meeting between members of the SEC’s Division of Trading and Markets, Grayscale, and the law firm Davis Polk. The talks centered on the listing of Grayscale’s proposed ETF on NYSE Arca, with Grayscale’s CEO, Michael Sonnsenhein, actively participating in the discussions.
Grayscale’s ETF proposal is unique in the market as it involves converting an existing investment vehicle into an ETF. Despite its uniqueness, the SEC’s engagement with Grayscale is seen as a positive indicator for the broader ETF landscape. Following a court victory earlier this year, the SEC’s obligation to review Grayscale’s application underscores the evolving dynamics of the Bitcoin ETF space.
Additionally, Grayscale Bitcoin Trust (GBTC) is currently trading at a discount of -11.86% below its net asset value, adding an intriguing element to the ongoing developments in the crypto investment arena.
Overall, Grayscale’s submission of an updated filing for its Bitcoin ETF and its engagement with the SEC indicate potential progress in the spot Bitcoin ETF approval process. With ongoing discussions and amendments to its proposal, Grayscale is demonstrating its commitment to meeting regulatory requirements and potentially making headway in the ETF approval process.